Demonstrating professional judgement

Professional judgement is an attribute that chartered accountants are expected to demonstrate and a skill that can be continuously improved on.

Elements of professional judgement

The importance of professional judgement in audit

Good professional judgement underpins all audit work. ICAEW sat down with two experts to explore further.

FRC Professional Judgement Framework

Exclusive FRC's Professional Judgement Guidance

Article
04 Oct 2022

The FRC’s new guidance on professional judgement is not prescriptive, but all audit firms need to do more than simply be aware of it and its framework of mindset, professional judgement, consultation and environmental factors.

New guidance published in response to audit failings

Article
15 Jul 2022

The FRC’s recently published Professional Judgement Framework, the first of its kind, aims to help auditors improve their practice in this key component of quality audit.

FRC guidance on professional judgement

Website
23 Jun 2022

The FRC published guidance on professional judgement in June 2022, including a framework, illustrative examples and expectations.

Can we regulate 'good' judgement?

Insights and analysis

Exclusive Scepticism and judgement: overcoming impediments

Article
07 Jul 2023

Identifying and addressing barriers to the exercise of professional scepticism and judgement can enhance audit quality. Simon Kettlewell shares his tips.

Exclusive Intuitive judgements and how to improve them

Article
07 Jul 2023

Tips from auditors and regulators on understanding, managing and mitigating biases that may hinder objective reasoning.

Exclusive Scepticism and challenge

Article
10 Mar 2023

All auditors want to apply professional judgement with scepticism and appropriate management challenge, but which key attributes and elements should be the focus of this never-ending quest?

How businesses approach fraud risk: the audit committee view

Article
27 Jan 2023

What are the key factors behind the emergence of fraud risks and how should organisations ensure their controls are fit for purpose? Two experienced audit committee chairs provide their thoughts.

Building a culture that cultivates professional judgement

Article
27 Jan 2023

Professional judgement is a difficult part of the audit process to define and to apply in practice, including clarifying the differences between it and professional scepticism.

How personal culture and faith could inform professional judgement

Article
17 Jan 2023

A new book outlines the role that personal ethics, background and traditions can play in shaping professional ethics in finance and accountancy.

Helpsheets and resources

Exclusive Documentation of significant professional judgements in an ISA audit

There are many documentation requirements in International Standards on Auditing but the extent of documentation of judgement is a particularly critical area for auditors. This guide helps auditors understand why professional judgement is important and the extent to which they need to document it.

Exclusive What good looks like – Audit of accounting estimates

The audit of accounting estimates can be a complex area. Here we address the changes brought in by ISA (UK) 540 (Revised December 2018) and demonstrate what a good audit file looks like in the context of auditing accounting estimates.

All Too Familiar ™

All Too Familiar is an award-winning 16-minute training film which explores the degree of trust still placed in personal and professional relationships and whether trust is enough in the fight against economic crime. It aims to challenge mindsets and provoke discussion on the need for greater professional scepticism when faced with potential money laundering risks.

Professional scepticism

These resources are intended to help auditors in applying and demonstrating a sceptical mind set in their audits.

ICAEW Code of Ethics

Regulations

Access the Code which is based on IESBA’s Code of Ethics for Professional Accountants and supporting materials.

ICAEW Code of Ethics Parts 1 to 3 Overview

Helpsheets and support
PDF (227kb)

Overview summarising the key requirements in each section of parts one to three of the ICAEW Code of Ethics 2020.