A 2017 brochure prepared by the Ernst
& Young Foundation (US) states that “Professional judgment skills have
never been more important for professionals to operate successfully in an
environment of increasing risk and complexity.” In this regard, the Ernst &
Young Academic Resource Center (EYARC) is providing free, leading-edge
resources to prepare students for the fast-changing, global marketplace.
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| Professional Judgment Framework (click to enlarge) |
As the above graphic illustrates, the EYARC has developed
curriculum materials to introduce the professional judgment framework to
students. According to the accompanying User
Guide, lecture notes and supplemental curriculum materials allow students to
apply the professional judgment framework to a variety of accounting and
auditing scenarios. The supplemental materials include an “application
template” which serves as a tool to track, organize and evaluate considerations
of the judgment framework. For each application scenario provided, this
template can be used by the students to support their judgment.
Documenting the rationale and support for important judgments made during the course of the audit is generally required by professional standards. In addition, for preparers, documentation helps support assertions made in the financial statements and supports an effective system of internal control. As such, requiring students to develop a written memorandum will assist in reinforcing the concepts included in the judgment framework and the development of effective writing skills.
Finally, the lecture notes discuss that the overarching considerations for the professional judgment framework are to be continually readdressed throughout the overall judgment process. However, in completing the application scenarios, for simplicity purposes, students will only address the overarching considerations at the beginning of the judgment process.
Documenting the rationale and support for important judgments made during the course of the audit is generally required by professional standards. In addition, for preparers, documentation helps support assertions made in the financial statements and supports an effective system of internal control. As such, requiring students to develop a written memorandum will assist in reinforcing the concepts included in the judgment framework and the development of effective writing skills.
Finally, the lecture notes discuss that the overarching considerations for the professional judgment framework are to be continually readdressed throughout the overall judgment process. However, in completing the application scenarios, for simplicity purposes, students will only address the overarching considerations at the beginning of the judgment process.
