Exposure Draft, Proposed Application Material Relating to Professional Skepticism and Professional Judgment
This proposed guidance links key concepts in the IESBA Code of Ethics for Professional Accountants and clarifies their application, namely:
- how compliance with the fundamental principles in the Code supports professional skepticism by auditors and assurance practitioners for audit, review, and other assurance engagements; and
- the importance of professional accountants obtaining a sufficient understanding of the facts and circumstances known to them when exercising professional judgment in applying the conceptual framework underpinning the Code.
The proposed guidance addressing the fundamental principles and professional skepticism responds to a recommendation from the tripartite Professional Skepticism Working Group established by the IESBA, the International Auditing and Assurance Standards Board, and the International Accounting Education Standards Board. Once finalized, this material will be included in the clarified and restructured Code that the IESBA plans to complete by the end of 2017.