i) Issues to Consider in Professional Skepticism Assessment:

1. Integrity of Management: The auditor should assess the control environment of the business, including how management addresses internal control issues and their history of ethical behavior.
2. Accuracy of Responses: Question the accuracy of responses to inquiries and other information obtained from management and those charged with governance.
3. Revising Risk Assessments: Be prepared to revise risk assessments as a result of identifying material or significantly inconsistent information during the audit.
4. Contradictory Evidence: Remain alert to audit evidence that contradicts other audit evidence obtained, indicating a potential misstatement or error.

ii) Circumstances That Can Hinder Professional Skepticism:

1. Budget Constraints: Tight budgets may discourage the use of experienced resources, limiting the auditor’s ability to critically assess management’s assertions.
2. Tight Deadlines: Deadlines can pressure the audit team, reducing the time available for thorough analysis and potentially leading to oversight.
3. Lack of Cooperation from Management: Management’s reluctance to provide necessary information or cooperation can hinder the audit team’s ability to exercise skepticism.
4. Insufficient Understanding of the Entity: Without a deep understanding of the client’s business and environment, the audit team may struggle to question management effectively.
5. Overreliance on Automated Tools: Excessive reliance on automated audit tools can reduce critical assessment of the evidence and lead to oversight.