11. Professional scepticism is defined as:

(a) An attitude to avoid significant mistakes which could influence the economic decisions of users taken on the basis of the financial statements.

(b) The application of relevant training, knowledge and experience in making informed decisions about the courses of action that are appropriate in the circumstances of the audit engagement.

(c) An analysis of management decisions in terms of failed outcomes.

(d) An attitude that includes a questioning mind, being alert to conditions which may indicate possible misstatement due to error or fraud, and a critical assessment of evidence.




















Ans: (d) An attitude that includes a questioning mind, being alert to conditions which may indicate possible misstatement due to error or fraud, and a critical assessment of evidence.