What does professional skepticism mean on the CPA exam?
Professional skepticism. An attitude that includes a questioning mind and a critical assessment of evidence. It does not assume dishonesty, and it does not assume honesty either.
Defined against AU-C 200.14.
Which CPA exam sections use professional skepticism?
Professional skepticism appears in the AUD section of the CPA exam.
Other terms defined against AU-C 200
- applicable financial reporting framework: The framework management adopts for the statements, such as GAAP or a special purpose framework.
- control risk: The risk that the entity's own controls will not prevent, or detect and correct, a material misstatement on a timely basis.
- inherent risk: The susceptibility of an assertion to material misstatement before any control is considered.
- level of assurance: How much confidence the practitioner expresses.
- risk of material misstatement: The risk that the statements are materially misstated before the audit begins.