How we Use Information, My PhD Project

Open for Comment: IESB Proposed Application Material relating to Professional Skepticism & Professional Judgment

How can experts tell whether a corporation is heading for a scandalous fail?

Call it micro-management if you like, but it really is important to achieve greater understanding of how auditors assess risks, and how they assess the ways they think about assessing the risks and the evidence they gather to test the risk exposures.

Professional Skepticism and Professional Judgment have been awkward and challenging topics for more than a hundred years.  Regulations, industry reforms, professional standards, and even mandatory statutory obligations, have failed to really resolve the problems of how to evaluate information and processes used to assess whether company reporting presents a fair view of its net financial position and performance.  For background information about these topics, see my research on this topic (and if you’re really keen, you might even browse my PhD thesis).

Have your say!

If these issues are important to you, you can provide your feedback to the International Ethics Standards Board for Accountants about its Draft Proposed Application Material relating to Professional Skepticism and Professional Judgment.  The document is publicly accessible to view or download from the IFAC website.

The proposals in the Exposure Draft may be modified in light of comments
received before being issued in final form.

The deadline for Comments is July 25, 2017.

Respondents are asked to submit their comments electronically through the IESBA website, using the “Submit a Comment” link. Please submit comments in both PDF and Word files. Also, please note that first time users must register to use this feature. All comments will be considered a matter of public record and will ultimately be posted on the website.  More information is included in the Exposure Draft document.

The structures and processes that support the operations of the IESBA are facilitated by the International Federation of Accountants® (IFAC®).

Copyright Notice regarding the Exposure Draft document:

Copyright © May 2017 by the International Federation of Accountants (IFAC). All rights reserved. Used with permission of IFAC. Permission is granted to make copies of this work to achieve maximum exposure and feedback.

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