Which of the following situations shows Kelcie, a forensic accountant, exercising professional skepticism?
A. Kelcie argues that the immediate previous year's records serve as a better basis for the investigation than the earlier years.
B. Kelcie believes that the reputation of the external auditor is an indicator of the reliability of the audit report.
C. Kelcie believes in the phrase "guilty, until proved otherwise" and does not presume innocence until she has reasonable doubt.
D. Kelcie verifies the reports given by the internal auditor against available evidence before using it in her reports.
Answer:D
Which of the following situations shows Kelcie, a forensic accountant, exercising professional skepticism?
A. Kelcie argues that the immediate previous year's records serve as a better basis for the investigation than the earlier years. B. Kelcie believes that the reputation of the external auditor is an indicator of the reliability of the audit report. C. Kelcie believes in the phrase "guilty, until proved otherwise" and does not presume innocence until she has reasonable doubt. D. Kelcie verifies the reports given by the internal auditor against available evidence before using it in her reports.
Explanation: D) Forensic accountants must exercise a healthy dose of professional skepticism. This reflects a proactive, questioning mindset, where nothing is as it seems and "trust, but verify" is the general rule. Kelcie follows this general rule, which indicates professional skepticism.