Professional scepticism

Critical and central to all audits, professional scepticism is a topic that is heavily debated within and outside the accountancy profession. These resources are intended to help auditors in applying and demonstrating a sceptical mind set in their audits, as well as move the debate forwards.

Scepticism: the practitioner’s take

How can scepticism be improved? Based on a series of interviews with practitioners, we get their take on what needs to be done to enhance scepticism, including key takeaways and a challenge to other stakeholders to do more to help.

Featured articles

• Demonstrating appropriate levels of professional scepticism during the 2020 reporting season
  Three areas where pressure may fall on professional scepticism in a world after COVID-19.
• Coronavirus: Introducing reverse stress testing
  The COVID-19 pandemic has raised many questions about the viability of existing business models. Boards will in many cases need to revisit risk assessments and going concern assessments developed prior to the pandemic. Reverse stress testing is one technique entities can use to identify gaps in their risk management and vulnerabilities in their business models.
• Coronavirus: (COVID-19): considering going concern
  The Audit and Assurance Faculty have produced this two part guide for auditors, covering COVID-19 considerations for auditing going concern, and how to report when a material uncertainty relating to going concern exists

Practical guidance and training tools

Guidance

Documentation of significant professional judgements in an ISA audit

There are many documentation requirements in International Standards on Auditing but the extent of documentation of judgement is a particularly critical area for auditors. This guide helps auditors understand why professional judgement is important and the extent to which they need to document it.

Management override in an ISA audit

The term “management override” refers to the ability of management and/or those charged with governance to manipulate accounting records and prepare fraudulent financial statements by overriding these controls, even where the controls might otherwise appear to be operating effectively. This guide looks at how auditors assess the risk of management override and their response to it.

Webinars

The importance of scepticism
This webinar looks at the consequences of a lack of scepticism in audits. It covers:

• Where (and when) does scepticism start and finish?
• What does scepticism look like?
• Why do we need scepticism?
• How do we demonstrate scepticism?  

ICAEW training films

Our training films, False Assurance and Without Question provoke discussions and challenge mindsets about how to deal with difficult decisions and topical issues in business situations.

Find out how ICAEW training films can help develop auditors’ scepticism skills.  

Industry guides
Do you need to find industry specific information for a client or to gain an understanding of a new market for business? ICAEW members and students can use the Library & Information Service guides to help kick-start their search. 

Company research
Keep up-to-date with the latest information on your client’s industry, competitors and markets.