Skip to content

CMA Final · Cost and Management Audit · Cost Auditing and Assurance Standards

In the context of SCA 103, which statement best reflects professional skepticism?

Professional skepticism is a questioning mind with a critical assessment of audit evidence, applied throughout the audit. The auditor must not settle for less-than-persuasive evidence just because management seems honest, and representations cannot replace sufficient appropriate evidence.

  1. AManagement representations may replace sufficient appropriate audit evidence when integrity is believed
  2. BA critical, questioning assessment of evidence, not accepting less-than-persuasive evidence on a belief that management is honestCorrect
  3. CSkepticism is required only at the planning stage
  4. DSkepticism means assuming management is dishonest

Explanation

SCA 103 describes skepticism as a questioning mind and critical assessment of evidence, necessary throughout the audit. The auditor should not accept weak evidence because of a belief in management's honesty, and representations are no substitute for evidence.

Did you get it right without looking?

One question tells you little. A timed set on Cost Auditing and Assurance Standards shows your real accuracy, how long you take and where you lose marks.

Practise Cost Auditing and Assurance StandardsFree diagnostic mock

More Cost Auditing and Assurance Standards questions