The auditor plans and performs an audit with an attitude of professional skepticism. Such an attitude is necessary for the auditor to identify and properly evaluate, for example:
♦ Matters that increase the risk of a material misstatement in the financial statements resulting from fraud or error (for instance, management’s characteristics and influence over the control environment, industry conditions, and operating characteristics and financial stability).
♦ Circumstances that make the auditor suspect that the financial statements are materially misstated.
♦ Evidence obtained (including the auditor’s knowledge from previous audits) that brings into question the reliability of management representations.
♦ Circumstances that make the auditor suspect that the financial statements are materially misstated.
♦ Evidence obtained (including the auditor’s knowledge from previous audits) that brings into question the reliability of management representations.
However, unless the audit reveals evidence to the contrary, the auditor is entitled to accept records and documents as genuine. Accordingly, an audit performed in accordance with auditing standards generally accepted in India rarely contemplate authentication of documentation, nor are auditors trained as, or expected to be, experts in such authentication.