Question One
Professional skepticism refers to an attitude that prompts individuals to adopt a questioning mind, maintain an open mind to situations that may demonstrate possible misrepresentation of facts, and conduct a critical evaluation of audit evidence and management and clients’ assertions (Nach, 2014). Auditors and accountants get professional skepticism through experience and education. For instance, auditors and accountants use their experience to relate their current cases with the results of incidents that they have handled in the past to know the step to take. Additionally, education teaches auditors and accountants to identify signs that may indicate misrepresentation of facts (Nach, 2014).
Question Two
I think that the fee clients pay can impair the independence of an auditor. The client's interests are paramount for the auditors. This means that the auditor must seek to fulfill the desires of those who pay them even if they do not agree with them. Additionally, failing to side with their clients may result in auditors being viewed as traitors or having joined forces with their clients’ opponents. Thus, auditors must ensure that they please their clients if they want to continue earning revenue. This means that auditors must choose either to be independent or risk losing their sources of revenue.
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Question Three
I think that relatives can impair the independence of professionals such as auditors. There is a cliché that says that "blood is heavier than water." This means that family comes first always and the same happens when professionals are discharging their duties. The personal dilemma is inescapable, especially when one's relative has little or no chance of realizing any positive results from his/ her interaction with professionals who is one of his/her family members. Auditors are likely to manipulate their findings to please their relatives if they are required to offer professional services to their clients.
References
Nach, R. (2014). Professional skepticism: An essential attitude. Accessed on August 10, 2017. https://www.isca.org.sg/media/775686/profskepticism.pdf
