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Executive summary
Project objective
The objective of this Report is to discuss the nature and practice of professional judgment in auditing. The Report considers professional judgment in the context of a financial statement audit but, because judgment must be applied in any type of engagement an auditor undertakes, the findings may be equally applicable to other assurance engagements. The Report focuses on concepts and principles of professional judgment rather than prescriptive rules because rules, by their very nature, cannot state the most that is expected of an auditor but simply the least. Rules can only define a minimum level of acceptable professional conduct; they can neither pre-empt nor usurp auditor judgment.
(Study Group Chair - Douglas J. Low, FCA, Institute of Chartered Accountants of Ontario)
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