Auditing and Attestation- Certified Public Accountant (CPA) Practice Exam -

What must a CPA possess to exercise due professional care?

1. A skill level higher than others in the field

2. Only the ability to perform audits independently

3. The same skill level as peers and critical review capabilities

4. The ability to manage client relationships effectively

The correct answer is: The same skill level as peers and critical review capabilities

A CPA must possess the same skill level as peers and critical review capabilities to exercise due professional care. Due professional care is a fundamental concept within the auditing profession that emphasizes the importance of applying appropriate skills and diligence when performing services. This standard ensures that CPAs meet the professional expectations and responsibilities while conducting audits or providing attestation services. By maintaining a skill level comparable to peers, CPAs can ensure that they are well-versed in current auditing standards, practices, and regulatory requirements. This proficiency allows them to effectively assess the accuracy of financial statements and the effectiveness of internal controls, contributing to the integrity and reliability of the audit process. Moreover, critical review capabilities are essential because they involve the ability to evaluate and question the evidence gathered, make informed judgments, and identify any inconsistencies or issues that may arise during the audit. This level of scrutiny is crucial for providing a fair and objective opinion on the financial statements under examination. The other options focus on various skills or characteristics, but they do not encompass the full scope of what is required to demonstrate due professional care. Having a skill level higher than peers, merely having independent audit capabilities, or managing client relationships effectively do not directly address the necessity for auditors to match their expertise with industry standards and possess the critical