Cpa Audit Professional Judgment And Its Application

The regular operation of market economy needs accounting information of high quality as the precondition and basis. Auditors need powerful capability of professional judgment to make proper assurance of high leveled accounting information. Professional judgment is the essence of auditing, and the ability of judging has become the key of fulfilling auditing tasks efficiently. The research on auditing judgment plays an important role both in auditing theories and practices, and it has already become the most active field of auditing research.Research on auditing judgment in foreign countries began early in 1950's, but in China very few books and thesis can be seen only by the year 1999, not alone books expound systematically. This dissertation will focus on both theories and practices of auditing judgment and aims at improving the quality of judgment of CPAs in our country.It should be indicated that this dissertation only researched the performance of those audit judgments that are made by certified accountants when auditing annual reports. Other fields of CPAs that beyond this would not be discussed though professional judgments would also be used.This dissertation had treated of audit judgment performance in four chapters.The first chapter was about the conception of audit judgment as well as its becoming, characters, and classifications. The point of view was fixed to treat audit judgment as a process of making decisions. All of these were essential in this research, and helpful for following chapters.The second chapter was about the procedure of making a judgment decision and was about factors that influence audit judgment on three aspects: CPAs, auditing tasks, and the environment. All these factors would be used in discussing how to improve judgment quality.The third chapter was about the practice of auditing judgment from the time CPAs accept the auditing task to the point of signing the report. In this chapter, the whole auditing task would be treated as four phases: the moment of accepting the task, the process of making a plan, the process of putting in practice and the moment of signing the report.The last chapter was the conclusion of the whole dissertation, it was about the current level of audit judgment in our country, factors that relate to high leveled audit judgment, and suggestions on improving the quality of audit judgment in our country.