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

Which of the following is NOT an example of professional skepticism?

1. Using third-party confirmations.

2. Consulting with a specialist for corroboration.

3. Designing procedures for reliable evidence.

4. Inquiring about prior year assessments of management.

The correct answer is: Inquiring about prior year assessments of management.

The correct answer reflects the understanding that inquiring about prior year assessments of management does not exemplify professional skepticism in the same way as the other options. Professional skepticism is characterized by an attitude that includes a questioning mind and a critical assessment of audit evidence. It involves being alert to conditions that may indicate possible misstatement due to error or fraud, and it often leads to further inquiry or verification. In this context, using third-party confirmations, consulting with specialists for corroboration, and designing procedures for reliable evidence all demonstrate proactivity in verifying and validating information. These actions are rooted in an auditor's initiative to gather sufficient and appropriate evidence to make informed decisions about the financial statements’ integrity. Conversely, inquiring about prior year assessments of management does not inherently illustrate a skeptical approach. While it is important to consider past management assessments, this action alone does not imply the necessary critical evaluation or skepticism about the current year's financial statements or management assertions. It may simply be part of a routine inquiry rather than a proactive effort to question or challenge management’s current assertions. Thus, this option does not align as closely with the core principles of professional skepticism compared to the others listed.