Research On Audit Judgment

It is generally accepted that high quality accounting information is the prerequisite and foundation of the orderly, efficient and well-balanced operation of the capital market. The auditor performs as the sound assurer or rational regulator of the high quality accounting information. In order to satisfy the requirements of that role, the auditor should have appropriate professional competence. There is no denying the fact that the core of the profession competence is the auditor's capability in professional judgment. Therefore, the capability in professional judgment is the pivotal standard to evaluate whether the auditor can be competent for the designated irreplaceable and important role. However, the auditor's capability in professional judgment in China is not very satisfying. The current level is far from fulfilling the quality requirements of the capital market for the accounting information and can not meet the increasingly fierce competition from international CPA firms brought about by the entry into the WTO. Consequently, the status quo must be improved and amended urgently and imminently. The accounting profession in China has paid much intense attention to that issue.Aspiring to make some contribution to the research in the field, I conduct a systematic and thorough research of the audit judgment theory and investigate how to improve the quality of audit judgment in China. This research is based on the current achievements in the relevant realms and focuses on the auditing of financial reports by CPAs. I carry out the research by effectively and properly combining normative and empirical research methods together.The content of the paper can be divided into six parts, including introduction, the essential theory of audit judgment, the process and methods of audit judgment, the performance of audit judgment, the problems and corresponding resolutions in audit judgment, and the research conclusions and some issues to be further studied.The first part is introduction. First, I discuss the theoretical and practical significance of the topic in the dissertation. Second, I systematically and extensively review the domestic and international literature on audit judgment. Third, I introduce the research scope, research objectives and research methods of the dissertation. Fourth, I introduce the logical clue and research framework of the dissertation. Finally, I introduce the innovations of the dissertation.The second part concentrates on the essential theory of audit judgment, including five chapters from Chapter 1 to Chapter 5. Chapter 1 deals with the properties of the audit judgment. First, I define the meaning of audit judgment: the auditor performs estimation, assertion and selection on some auditing items and about her or his own behaviors on the basis of her or his professional knowledge and experience by identification and comparison. Second, I analyze the conducing causes of the audit judgment from different perspectives, such as the uncertainty of economic activities, the information asymmetry, and the ambiguity of some judgment standards.