Research On Professional Judgment Of Auditing

With the development of the securities market, the audit reports issued by CPAs of public companies are increasingly important. They are the results of a comprehensive judgment by CPAs, and auditing professional judgment is the core of audit. As early as the 1950s, the research on audit professional judgment was began with this thesis "evidence,judgment and auditor's opinions", written by Mautz. Then, the research of audit professional judgment has become a very active field of the audit theoretical study at abroad. While, the relevant academic papers was published until it is the 1990s in China. With the development of the market economy, the uncertainties in audit increased, and the audit risk is increasing. As the pressure of litigation from audit increased, CPAs have to concern themselves about professional judgment. Last year, the new auditing standards were promulgated, that attracted more attention to the auditing professional judgment. Thus, on this opportunity, this paper, based on reviewing the research results of professional judgment, in light of the new auditing standards, begins to explore the relationship between the auditing standards and the auditing professional judgment. Then through analyzing the various affecting factors, this paper is trying to find the relevant measures to enhance the level of the CPAs' professional judgment. That will be of benefit to all the auditors. The scope of this paper is limited to CPAs' audit. The study is developed by standard method, involved classification and induction.First, the article is full on the subject of the importance and relevant content on auditing professional judgment, makes a clear definition of the concepts and quality character, and analyzes the theoretical and actual basis combining with practice. Second, it introduces the improved course of auditing standards, the interaction between professional judgment and auditing standards, and reveals that the importance of the auditing professional judgment is enhanced by the new auditing standards through comparative method. Whereas, auditing professional judgment in turn contributes to the improvement of the auditing standards system. The affecting factors are discussed in Chapter 4 of this article, including the environment, the executants and the objects of professional judgment. It shows that CPAs are the primary affecting factor of auditing professional judgment through Lens Model. The discussion is a basis of the following. Therefore, considering all of above, measures to enhance auditing professional judgment are proposed. It consists of the establishment of the guidelines system, the training of qualified personnel, and the feasible way to carry out. This article provides a useful reference to CPAs.