Professional Skeptiscism: Every organization need to design audit because of detecting both misstatements. To achieving this kind of audit the audit must be well planned and performed with the professional scepticism. Professional scepticism performer needs to questioning mind with critical assessment of audit evidence.
2. Illegal acts: Illegal acts refers violation of laws or government regulations. There are two examples for illegal acts.
Direct effect illegal acts: When violations of law and regulations have directly effect on specific account balance in the financial profit or loss.
Example: violation of tax laws that directly affects tax expense and tax payables. The auditor’s responsibility same like error and fraud. In audit the auditor justifies and get evidence tax laws violations. The problem can be done by the discussion with client and federal tax officers.
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