If You Need Love, Get A Puppy

2059 Words Dec 5th, 2014 9 Pages
If You Need Love, Get A Puppy

1. PCAOB describes professional skepticism as a general duty of care that needs to be applied by the auditor throughout the duration of the audit engagement. Professional skepticism involves the auditor having a clear and questioning mind regarding the assertions that are presented by management or other client personnel. The auditor is instructed to not take the words or data presented by management as sufficient and appropriate audit evidence but rather the auditor needs to thoroughly audit the evidence with a questioning mind to achieve reasonable assurance about the persuasiveness of the evidence. Skepticism is composed of three elements; auditor attributes, mindset and actions. The PCAOB
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Will’s independence in fact may be perceived differently by different users. However, Will’s independence in mind seemed to be impaired in this case. He was clearly uncomfortable accusing his best friend’s wife of fraud. Some cases may exist where auditors in similar situations were so uncomfortable that they looked the other way.

The factor that plays the greatest role in determining auditor independence is independence in mind. Auditors may or may not appear to be independent, but if the auditor is truly independent in mind, then the auditor can remain objective and unbiased. The profession should consider tightening the Code of Professional Conduct to address the issue of an audit team member knowing a close friend that holds any position at the audit client. If this scenario arises, the firm can still audit the client, but the audit member with the close relationship won’t be able to be on the audit team.

3. The evidence in the case is presented in a manner that leads to a stronger refute to Jessica’s claim that the money had fallen between the cabinets as opposed to supporting her claim. The evidence that would lead to support her claim would be her statement that there could be several explanations as to why the ticket was missing. She originally suggested that the ticket most likely was included with the other cash. After finding the ticket, Jessica states a story of what must have happened was that the
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