FRC publishes what makes a good environment for auditor scepticism and challenge

News types: Codes and Standards Announcements, Generic Announcement, Guidance, Policies and Responsibilities, Publications

Published: 23 November 2022

A critical attribute of an auditor’s mindset and behaviour is exercising professional scepticism and challenge when performing audits. The most significant quality issues identified by the FRC over a number of years involve the inconsistent application of professional scepticism and challenge, resulting in the poor application of professional judgement.

As an improvement regulator, the report summarises what good looks like and provides examples of good practice from the FRC’s ongoing supervision work.

The report will be of particular interest to audit firms, audit committee chairs and those with an interest in audit quality.