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Professional Judgement. The Key To A Successful Audit

Author

Listed:
  • Anca Oana CHIȘ

    (Faculty of Economics 1 December1918 University, Alba Iulia)

  • Andra Maria ACHIM

    (Faculty of Economics and Business Administration, Babes Bolyai University ClujNapoca)

Abstract

Professional judgement represents the key to a succesful audit engagement. In order for the auditors to use their professional judgment correctly, they must know the rules and standards, both those related to accounting and audit.ISA 200 emphasizes the importance of exercising professional judgment in the planning phase and in the auditor's audit work. Judgment is exercised by an auditor whose training, knowledge and experience have assisted in developing the skills needed to achieve reasonable judgments. The article is a theoretical one, its main objective being the study of professional judgement in audit engagements. Professional judgment was analyzed using a qualitative research methodology, taking into considerationdefinitions from auditing standards and presenting the work of researchers all over the world, while emphasizing specific situations in which judgement is used. Our study draws the attention to the importance of the professional judgement during audit and the obligation of each auditor to use it appropriately.

Suggested Citation

  • Anca Oana CHIȘ & Andra Maria ACHIM, 2014. "Professional Judgement. The Key To A Successful Audit," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 5, pages 217-222, November.
    • Handle: RePEc:cmj:seapas:y:2014:i:5:p:217-222
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    References listed on IDEAS

    as
    1. Mathias Dewatripont, 1994. "Auditor professional judgement, implications for regulation and the law: discussion," ULB Institutional Repository 2013/9671, ULB -- Universite Libre de Bruxelles.
    2. D. Eric Hirst & Lisa Koonce, 1996. "Audit Analytical Procedures: A Field Investigation," Contemporary Accounting Research, John Wiley & Sons, vol. 13(2), pages 457-486, September.
    3. David Hatherly, 1999. "The future of auditing: the debate in the UK," European Accounting Review, Taylor & Francis Journals, vol. 8(1), pages 51-65.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Professional judgement; Scepticism; Audit engagement; Audit opinion;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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