The 1988 CICA research study
Professional Judgment in Financial Reporting examines the nature and practice of professional judgment on accounting measurement, presentation and disclosure issues. The focus is on the responsibilities of both preparers and auditors. Such professional judgment is shown to be, at its best, a systematic and analytical process of reaching objective conclusions about issues that may be difficult and complex. Impediments to quality in this process are identified and recommendations are directed to removing or reducing such impediments. The close relationship between professional judgment and professional standards is given particular attention, as are such aspects of professionalism as integrity, knowledge and consultation. The study analyzes practices and standards in Canada, the US, UK and International accounting standards. Most recommendations will be relevant to standard-setters, professional accountants and others in all countries.
