The application of relevant training,knowledge,and experience in making informed decisions about appropriate courses of action during an audit is known as
A) Absolute assurance.
B) Professional judgment.
C) Professional skepticism.
D) Reasonable assurance.

Question

Quizplus · Accepted Answer

Professional judgment is the application of training, knowledge, and experience by the auditor while making informed decisions regarding the audit. This includes the interpretation of information obtained during the audit, determining the nature and extent of the audit procedures needed, and evaluating the audit evidence. Professional judgment is essential to ensure that the auditor conducts a thorough and effective audit. Other options - absolute assurance refers to the concept that the auditor is 100% certain that there are no misstatements in the financial statements (not possible); professional skepticism refers to the auditor maintaining an attitude of questioning and critical analysis throughout the audit process; reasonable assurance refers to the high level of assurance provided by auditors but not 100%.

The Application of Relevant Training,knowledge,and Experience in Making Informed Decisions