Professional judgement guidance

The FRC has published comprehensive professional judgement guidance for auditors, in the hope that it will improve how they exercise professional judgement.

While professional judgement is key to high quality audit, the FRC regularly identifies poor professional judgement as one of the most significant issues affecting audit quality.

The FRC’s Mark Babington said: “Professional judgement is a fundamental requirement for high quality audit. Unfortunately, the FRC’s supervision and enforcement work regularly finds professional judgement has not been exercised effectively and consistently, undermining audit quality and trust in audited accounts.”

The new guidance, which is the first of its kind by a regulator, sets out a clear framework for how auditors should exercise professional judgement to enhance audit quality. Check out the full report at: