Programme Objective
Many auditors and accountants alike have underestimated, or overlooked altogether the importance of professional judgment in the course of their professional work or employment. The exercise of sound professional judgment, among others, in the current business environment is even more critical to ensure that they are not the target for disciplinary proceedings due to professional misconduct or litigation relating to professional negligence.
“It’s a matter of professional judgment” was the Deloitte partners’ response to the Institute of Chartered Accountants of Ontario (the “ICAO”, now CPA Ontario) during a disciplinary committee hearing regarding charges of professional misconduct in relation to their performance of the Livent audit, which involved fraudulent financial reporting. However, the disciplinary committee (“DC”) disagreed and concluded that three of the four Deloitte partners were guilty of professional misconduct… The DC noted in its decision that “it is not sufficient for auditors to identify the risks and make appropriate plans to deal with them. The audit must be properly executed.” The DC found that the auditors were aware senior management was deceptive in its explanations of certain accounting transactions; however, the auditors failed to consider the broader implications of that deception and failed to exercise appropriate professional judgment and skepticism. (sources: Professional Judgment and Ethics (Pearson Canada); ICAO Disciplinary Committee, “In the matter of Douglas Barrington, Peter Chant, Anthony Power and Claudio Russo, members of the Institute under Rule 206 of Rules of Professional Conduct, Decision and Reasons for Decision dated February 11, 2007”.)
This session aims to better equip current and aspiring auditing/accounting/finance professionals with essential knowledge and practical approaches in applying and/or demonstrating professional judgment and skepticism appropriately in their job and thereby enhancing the substance and ethics of judgment made. Experience sharing and case studies will help participants to better appreciate/anticipate the real-life scenarios.
Programme Outline
Course Outline
- What is professional judgment?
- Why is professional judgment critical for accountants, auditors alike?
- What are the relevant ethical considerations and consequences of violation of such ethical requirements?
- What are the attributes of professional judgment?
- Exercise of sound professional judgment in the context of financial reporting and auditing processes
- Relationship between professional judgment and professional skepticism
- Difference between ”judgment” and ”estimates” under FRS
- Real-life examples and case studies
Training Methodology
Interactive lecture style, real life example/experience sharing as illustrations, with exercises/case studies
Closing Date for Registration
1 week before programme or until full enrolment
Intended For
An intermediate level programme intended for practicing and non-practicing auditing, accounting and finance professionals. Those who are keen in establishing better appreciation of professional skepticism and making informed professional judgments are encouraged to attend.
Schedule & Fees
Testimonial
Funding
No funding Available!
Programme Facilitator(s)
Programme Objective
Many auditors and accountants alike have underestimated, or overlooked altogether the importance of professional judgment in the course of their professional work or employment. The exercise of sound professional judgment, among others, in the current business environment is even more critical to ensure that they are not the target for disciplinary proceedings due to professional misconduct or litigation relating to professional negligence.
“It’s a matter of professional judgment” was the Deloitte partners’ response to the Institute of Chartered Accountants of Ontario (the “ICAO”, now CPA Ontario) during a disciplinary committee hearing regarding charges of professional misconduct in relation to their performance of the Livent audit, which involved fraudulent financial reporting. However, the disciplinary committee (“DC”) disagreed and concluded that three of the four Deloitte partners were guilty of professional misconduct… The DC noted in its decision that “it is not sufficient for auditors to identify the risks and make appropriate plans to deal with them. The audit must be properly executed.” The DC found that the auditors were aware senior management was deceptive in its explanations of certain accounting transactions; however, the auditors failed to consider the broader implications of that deception and failed to exercise appropriate professional judgment and skepticism. (sources: Professional Judgment and Ethics (Pearson Canada); ICAO Disciplinary Committee, “In the matter of Douglas Barrington, Peter Chant, Anthony Power and Claudio Russo, members of the Institute under Rule 206 of Rules of Professional Conduct, Decision and Reasons for Decision dated February 11, 2007”.)
This session aims to better equip current and aspiring auditing/accounting/finance professionals with essential knowledge and practical approaches in applying and/or demonstrating professional judgment and skepticism appropriately in their job and thereby enhancing the substance and ethics of judgment made. Experience sharing and case studies will help participants to better appreciate/anticipate the real-life scenarios.
Programme Outline
Course Outline
- What is professional judgment?
- Why is professional judgment critical for accountants, auditors alike?
- What are the relevant ethical considerations and consequences of violation of such ethical requirements?
- What are the attributes of professional judgment?
- Exercise of sound professional judgment in the context of financial reporting and auditing processes
- Relationship between professional judgment and professional skepticism
- Difference between ”judgment” and ”estimates” under FRS
- Real-life examples and case studies
Training Methodology
Interactive lecture style, real life example/experience sharing as illustrations, with exercises/case studies
Closing Date for Registration
1 week before programme or until full enrolment
Intended For
An intermediate level programme intended for practicing and non-practicing auditing, accounting and finance professionals. Those who are keen in establishing better appreciation of professional skepticism and making informed professional judgments are encouraged to attend.
Programme Facilitator(s)
