B is corrent because 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.
A is incorrect because 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.
C is incorrect because attaining the proper balance of professional experience and formal education is not a criterion for exercising due care.
D is incorrect because 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.
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