Question

The firm of Schultz and Gleason takes on the audit of Bagel Bakers, which they cannot reasonably expect to complete with their skill level. This is most likely a violation of?

1) professional competence
2) planning and supervision
3) sufficient relevant data
4) due professional care

Answer 1

If Schultz and Gleason lack the skills necessary for an audit and proceed, it indicates a violation of professional competence, meaning they do not have the required skills and knowledge.

Step-by-step explanation:

Suppose the firm of Schultz and Gleason takes on the audit of Bagel Bakers, which they cannot reasonably expect to complete with their skill level. In that case, this is most likely a violation of professional competence. Professional competence refers to the requirement that auditors must possess the relevant skills and knowledge to perform an audit. If they lack expertise in the necessary areas, they are not only risking the quality of the audit but are also not adhering to the standards expected of their profession. In this scenario, failing to acknowledge their limitation and nonetheless proceeding with the audit demonstrates a lack of due care in ensuring they are competent to deliver the service they are offering.