When Applying Professional Judgment,auditors Are Required to Justify Their Decision

question 73

Essay

When applying professional judgment,auditors are required to justify their decision based on seven criteria.List the criteria within the auditor's professional judgment framework.

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Definitions:

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with a particular responsibility, such as in a trustee-beneficiary or agent-principal relationship.

Personal Interests

Individual preferences, hobbies, or activities that a person finds enjoyable or important.

Apparent Authority

A situation in which a person appears to have the authorization to act on behalf of another entity, leading third parties to reasonably believe such authority exists.

Knowingly

Acting with awareness or deliberate intention, often referenced in legal contexts to imply a person had knowledge or should have had knowledge of the implications of their actions.