KPMG judgement framework monograph.pdf - a | Elevating professional judgment in auditing audit Elevating Professional Judgment in Auditing and

KPMG judgement framework monograph.pdf - a | Elevating...

This preview shows page 1 - 5 out of 61 pages.

a | Elevating professional judgment in auditing AUDIT Elevating Professional Judgment in Auditing and Accounting: The KPMG Professional Judgment Framework kpmg.com
Image of page 1
i | Elevating Professional Judgment in Auditing and Accounting Contents Preface: ii One: Can you really teach professional judgment? 1 Two: Judgment: What it looks like and common threats 4 Three: Judgment framing: The stuff of professional skepticism 16 Four: It’s a fact: Your typical judgment processes can lead to bias 22 Five: Give me hope: How to recognize and reduce judgment bias 31 Six: What about judgment in groups? 38 Seven: Coaching, reflection, and conclusion 43 Appendix 1 46 Appendix 2 48 Suggested solutions to end of chapter questions 50 Author biographies 55
Image of page 2
Preface Unlike the professional judgments that made the difference between tragedy and success–the tragedy of the Challenger space shuttle and the heroics of Apollo 13, judgments that auditors make do not affect life and death outcomes. They, nevertheless, can be consequential to the continued viability of organizations, the livelihoods of the people employed by them, and the investors who rely on them—not to mention the effectiveness and efficiency of our capital markets. Audit judgments—both big and small— matter. It matters, then, how well or poorly such judgments are made. Those individuals, teams and organizations known for making good judgments will distinguish themselves in the professional services marketplace. At the same time, the effects of challenging economic times, increased use of fair value measurements, and ever- expanding regulations, among other things, have raised the threshold for what is considered effective judgment and decision-making skills. Because the demand for these skills is increasing, auditors must adapt to the changing environment. To help keep pace with this change, KPMG launched an initiative two years ago to enhance the professional judgment and professional skepticism of its people and teams. KPMG collaborated with two professors at Brigham Young University to emphasize these skills in its training. The result of this effort is refreshed professional judgment content throughout KPMG's audit training curriculum for all levels of audit professionals. KPMG has committed itself to keep this training content current—a necessary step to keeping its professionals engaged and aware of the need to continuously improve their own skills and those of their audit engagement teams. KPMG will continue to monitor this ongoing program to understand the impact this training is having on its professionals and how their professional judgment skills are impacting their audit activities. Elevating Professional Judgment in Auditing and Accounting | ii
Image of page 3
KPMG is now taking the important step of sharing and leveraging the content we have created with the key stakeholder groups that are essential to KPMG’s success as a public accounting firm, including the academic community.
Image of page 4
Image of page 5

You've reached the end of your free preview.

Want to read all 61 pages?

  • Fall '15
  • JianxinGong
  • Depreciation, Judgment, KPMG LLP

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture