ABSTRACT: The purpose of this teaching case is to expand students' understanding of the concepts of professional skepticism and independence. The case is based on an actual incident and illustrates the exercise of professional skepticism by a staff auditor who finds himself in the uncomfortable situation of accusing a friend of fraud. The case demonstrates the difficult personal and professional choices that auditors must sometimes make. In analyzing the case, students consider auditor independence rules, as well as the concepts of independence in appearance and independence in mental attitude. Students are asked to identify the types of audit evidence and internal controls needed to detect and prevent the fraud, and to consider the appropriate audit response to an adverse situation.
If You Need Love, Get a Puppy: A Case Study on Professional Skepticism and Auditor Independence
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Robert L. Braun, H. Lynn Stallworth; If You Need Love, Get a Puppy: A Case Study on Professional Skepticism and Auditor Independence. Issues in Accounting Education 1 May 2009; 24 (2): 237–252. doi: https://doi.org/10.2308/iace.2009.24.2.237
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