Case:
Review the Case Study on Professional Skepticism and Auditor Independence
1. The key to the detection of the fraud in this case may have been Will's professional skepticism.
a. What is professional skepticism?
b. Identify specific examples of Will's exercise of professional skepticism in this case.
c. Identify conditions present in the case that could have limited Will's skepticism, and speculate as to what Will might have done if he had not been exercising professional skepticism.
2. Consider audit independence rules.
a. What do generally accepted auditing standards require regarding independence?
b. What is independence in appearance and how is it achieved?
c. Does the Code of Professional Conduct address the issue of personal client relationships? Why or why not?
d. Compare independence in mental attitude to independence in appearance.
e. Discuss Will's independence in this case.
f. In your opinion, what factor plays the greatest role in determining auditor independence?
g. What do you think the profession should do to promote independence in light of your answer to the previous question?
Attachment:- Case Study on Professional Skepticism.rar