Auditors are expected to maintain highest standards of professional ethics and ensure that the financial statements of the enterprises they audit, present a true and fair picture of the prevailing state of affairs on an ongoing basis.
As professionals, you must remain rather vigilant when auditing areas that: (a) involve significant management estimates and judgments, especially those measurements involving a wide range of measurement uncertainty; (b) involve significant non-recurring or unusual transactions; or (c) are more susceptible to fraud and errors being perpetuated due to weak internal controls 1. 23.