The publication has been produced by a joint working group from the International Auditing and Assurance Standards Board (IAASB), International Ethics Standards Board for Accountants (IESBA) and the International Accounting Education Standards Board (IAESB).

It outlines observations about the current environment and sets out actions the global standard-setting boards will take, as well as the role that other stakeholders can play, in enhancing professional scepticism.

The group says the current importance of professional scepticism is underscored by the increasing complexity of business and financial reporting, including the greater use of estimates and management judgment, business model changes due to technological developments, and the fundamental reliance of the public on dependable financial reporting.

Annette Köhler, joint working group chair, said: ‘When this initiative began, the boards were looking for input on whether and how each of their standards could contribute to strengthening the understanding and application of professional scepticism as it applies to an audit.

‘We have shared our observations and recommendations with the boards, and professional scepticism now features prominently in each of the boards’ strategic considerations.’

This publication is the first ever jointly commissioned by the three boards. Each of the boards has acted on the input received; the publication also includes a snapshot of their immediate actions and longer-term studies.

Toward Enhanced Professional Scepticism http://www.ifac.org/publications-resources/toward-enhanced-professional-...