The obstacles to the application of professional skepticism in audit practice

Abstract

Introduction. At the all stages of providing audit services and cooperation with the client, the auditor should adhere to professional skepticism. It is importantly to investigate the obstacles to the application of professional skepticism. The purpose of the paper is to propose a classification and provide a description of obstacles in the application of professional skepticism in audit practice Results. The obstacles in the application of professional skepticism are such conditions, circumstances and characteristics that do not allow to adequately apply professional skepticism in the practice of providing audit services in accordance with the situation and in accordance with professional standards. Obstacles can be conditionally divided into subjective and objective. Subjective obstacles are related to the competence, experience and skills of the auditor, features of his worldview, character, approach to audit activities. Objective obstacles are created by limited resources, competition between auditors, client expectations, limitations of information that the auditor evaluates. TThe main obstacles to the practice of professional skepticism are as follows: an inadequate level of skepticism of the auditor; cognitive distortions related to the content, time and method of obtaining information, cognitive distortions related to the attitude towards the client and cognitive distortions caused by the work of an auditor; skeptical attitude towards management staff and other employees of clients, users of audit services, management and employees of the audit firm; inadequate management approach to the use of professional skepticism; limitation of scope and term of audit services. Conclusion. In the process of providing audit services, in order to ensure an acceptable level of professional skepticism, it is necessary to identify and take into account the obstacles described, develop and implement acceptable precautionary measures in the internal quality control system of audit firm.