Question

Refer to the Why It Matters feature "The Crucial Role of Professional Skepticism."

e. Imagine that you are working on an audit engagement. What are the personal characteristics and behaviors of management or other client employees that might make you skeptical about whether or not they are providing you accurate audit evidence? Aside from personal observations, what publicly available information about management or other client employees could you obtain to determine whether you should exercise heightened professional skepticism in your dealings with these individuals?

Answer 1

Answer:

Below are the personality traits of the administration or any other employee of the organization which might render the auditor suspicious much about the authenticity of the audit evidence which is to be given:
1) If management tends to be reluctant when presenting audit evidence whenever needed by auditors;
2) The management if tends to be overly sensitive when it comes to presenting financial information as well as other related material.
3) And even in the situation if the employee involved seems not to be happy if the auditor asks him for some query.

*Feel free to comment in case of doubt and do Press thumbs up if you are satisfied with the solution provided.