Auditors often refer to the need for professional judgment. Required a. In examining the audit opinion formulation
Question:
Auditors often refer to the need for "professional judgment."
Required
a. In examining the audit opinion formulation process, identify the areas in which auditor judgment must be made. To what extent does that judgment extend beyond accounting issues?
b. It is claimed by some (although not always correctly) that they favor international accounting standards because they are more principles-based. Should principles-based accounting lead to more or less consistent audit judgments? Explain.
c. Should a public accounting firm expect that "professional judgments" made by its staff be, for the most part, consistent with each other? If not, why not? If yes, how are public accounting firms structured to help ensure consistent audit judgments?
Step by Step Answer:
Auditing A Business Risk Approach
ISBN: 978-0538476232
8th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg