Professional Judgment Is a Widely Used Concept in Accounting and Auditing.How

question 12

Multiple Choice

Professional judgment is a widely used concept in accounting and auditing.How is it defined in the audit standards?

• A)There is no definition of professional judgment in the auditing standards.
• B)Professional judgment includes consideration of key principles and concepts of disciplines underlying the professional standards, such as economics, psychology, law, finance, statistics and philosophy.
• C)Professional judgement means reaching a complex decision by incorporating auditing standards, accounting standards, and rules of professional ethics in a coherent manner.
• D)Professional judgement involves specialized concepts and language integrating several disciplines in order to provide appropriate justification for audit decisions.

---

Definitions:

Probabilities

The likelihood or chance that a particular event will occur, expressed as a number between 0 and 1.

Sales

The exchange of a commodity for money; the action of selling something.

Archaeological Dig

An excavation site where archaeologists systematically uncover artifacts and remains to study past human activity.

Graduate Students

Individuals who are pursuing advanced degrees beyond the bachelor's level, such as Master's or PhD degrees.