The Application Research On Professional Judgment In Certified Public Accountants Audit

Auditors should have a certain professional ability to judge and to provide reasonable protection for the accounting information. Professional judgement is important for the auditing,and widely used in the audit planning, implementation and reporting phases. The ability of auditors can affect the final audit quality. With the changing economic environment, more and more rich content of the audit, the public increasingly concerned about the reliability of accounting information,, the increasing responsibility of auditors, Certified Public Accountants audit is made many new challenges, and it demands that we strengthen the audit theory, with new theoretical results to guide practice.This thesis is based on previous studies combined with China's situation to study professional judgement and the application of it, which is important for the audit improvement and development and close relationship between theory and practice. This thesis studies the professional judgments of the certified public accountant in the audit report, but the CPA profession is not just limited to statements of the scope of the audit, are also involved in other business professional judgments.The main research methods used in this thesis is to regulate the study, in the course of the study also draws on behavioral psychology, game theory and other relevant professional knowledge to judge the auditing theory, practical usage, the problems and causes of specific analysis, the article concludes with measures to improve the quality of audit judgments. The main achievements in this thesis is that the audit professional judgement mode is proposed on the thesis of behavioral psychology. The thesis is divided into four parts, each part will now be outlined as follows:The first part is the introduction, which introduces the topic of theoretical and practical value, reviews and summarize CPA audit results in domestic and foreign professional judgments.The second part is the theoretical basis. First it introduces the importance and meaning of the CPA audit professional judgement. Second, it describes the reasons of professional judgments in the CPA audit, from the information asymmetry, uncertainties and the development of risk-based audit. Then introduced two standards of the audit professional judgement. And ended by the the mode of audit professional judgement.The third part describes the application of the auditing professional judgement in the whole process of the audit, this section describes the application of four stages of the auditing professional judgement in the Audit Practice and the application problems, and cause analysis was carried out. Specifically, from the professional competence and independence of the judge and whether to accept entrust to study the audit professional judgement prior to signing the engagement letter. The professional judgments of the audit planning stage are:determine the level of importance, determine the planning phase of the analytical procedures and assess the the risks of material misstatement. The implementation phase of the audit professional judgments include:judgments of audit evidence, audit sampling judgments and in major transactions and account balance audit judgments. Professional judgments in the audit report are:the importance of unadjusted audit differences to determine, the report stage of the analytical procedures to determine and select the appropriate audit opinion.The fourth part offers the proposals to improve the quality of the audit professional judgement.We should construct the framework of the judgment in auditing. The main measures on the CPA level are to improve the professional quality, strengthen risk management and promote the usage of information technology in the firm. The main improvements of auditors:accumulate the experience practicing and improve the professional ethics. The improvements of the relevant departments:regulate the audit fees; the relevant departments strengthen law enforcement, introduce the unlimited liability systems;increase the punishment.