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Preview: Good Intentions, Bad Outcomes: How Following Orders Can Be the Wrong Choice

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Good Intentions, Bad Outcomes: How Following Orders Can be the Wrong Choice

Exercising professional skepticism is on of the most important responsibilities of an auditor and an accountant. According to AU 230.09, a skeptical auditor is one who "neither assumes that management is dishonest nor assumes unquestioned honesty." This standard is heavily cited in the authoritative auditing literature; however, these can be difficult assumptions to maintain. This case highligts one accountant's struggle with exercising professional skepticisim while evaluating a client's financial statements. Additionally, this case discusses how exercising professional skepticism can be important in identifying fraud.


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