Detailed Answer
(a) The principle of due care requires the member to
observe the profession’s technical and ethical standards, strive
continually to improve competence and the quality of services,
and discharge responsibility to the best of the member’s ability.
Answer (b) is incorrect as the auditor is not required to examine
all corroborating evidence supporting management’s assertions,
but rather to examine evidence on a scope basis based on his/her
consideration of materiality and level of risk assessed. Answer
(c) is incorrect as the auditor should be aware of the possibility
of illegal acts, but an audit provides no assurance that all or
any illegal acts will be detected. Answer (d) is not the best answer
because competence is derived from both education and
experience. The principle of due care requires the member to
strive to improve competence, however, attaining the proper
balance of professional experience and formal education is not a
criterion for exercising due care.
