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Imagine a company hands you a stamped invoice showing a $500,000 payment for "strategic consulting." If the math adds up and the document looks real, can you simply approve it?
To a casual observer, paperwork is proof. But to an accountant, paperwork is just a claim waiting to be tested.

The Skeptical Mindset

Professional skepticism is an attitude that includes a questioning mind, being alert to conditions that may indicate misstatement, and critically assessing evidence rather than taking it at face value.
Alongside skepticism sits due care, which means applying technical diligence, following professional standards, and acting thoroughly without cutting corners.
In the landmark 1896 English legal case Kingston Cotton Mill, the court ruled that an auditor was a "watchdog, but not a bloodhound." Over the past century, modern accounting standards evolved to demand much more active, rigorous scrutiny than that historic ruling required.
How do accountants turn this questioning attitude into a systematic, repeatable verification process?

Technical Diligence: The Three-Way Match

When verifying transactions, accountants use the three-way match, which compares the purchase order, the receiving report, and the vendor invoice before any cash is released.
A purchase order proves the purchase was pre-authorized, a receiving report proves the items physically arrived, and the vendor invoice confirms the billed price matches the agreed terms.
What does this look like in a realistic audit scenario when numbers do not quite align?