The executive summary in the report states that: “Chartered Accountants (CAs) practice in a wide variety of fields including public accounting, industry, government, education, research, consulting, regulation and standard setting. In each of these areas, CAs are recognized for their expertise and for their ability to exercise sound “professional judgment” in a multitude of different contexts.
According to the academic research, the value of professional judgment is a function of both its importance and its quality, and each depends on the other. Together, these two attributes provide the foundation for this research initiative, which assesses whether there is a need for enhanced communication and collaboration by CAs on professional judgment matters. In other words, can an Internet-based professional judgment resource centre help to improve the quality of professional judgment? This is in the public interest, as well as the interests of policy developers and the business community. Clearly, it is also in the best interests of the profession.
This research initiative takes a seven-step approach, as follows:
- Step 1 – Review the definitions of professional judgment (see Chapter 1);
- Step 2 – Review the current research literature (see Chapter 2);
- Step 3 – Create a communications blog (see Chapter 3);
- Step 4 – Open a dialogue with CAs (see Chapter 4);
- Step 5 – Undertake an Internet-based survey (see Chapter 5);
- Step 6 – Review recent developments and other matters (see Chapter 6);
- Step 7 – Suggest practical ways to move forward (see Chapter 7).
Chapter 1 explains the purpose, methodology and anticipated outcomes of this research initiative. It also provides several definitions proposed in the literature and professional standards with regard to professional judgment. In addition, it concludes that Chartered Accountancy meets the criteria for a “profession” because:
- there is mastery by the practitioners of a particular intellectual skill, acquired by lengthy training and education;
- there is a specialized code of ethical conduct, laid down and enforced by that society or institute, designed principally for the protection of the public; and
- there is a belief, on the part of those engaged in the calling, in the virtue of interchange of views, and in a duty to contribute to the development of their calling, adding to its knowledge and sharing advances in knowledge and technique with their fellow members.
In light of these criteria and others, it is apparent that sound “professional judgment” should be based on ethical behaviour together with an appropriate foundation of technical skills and critical thought processes, sustained and enhanced by professional development. In addition, it requires the application of relevant knowledge, expertise and practical experience in selecting a rational course of action.”
