| Elevating Professional Judgment in Auditing and Accounting | | | | 9/17/2014 |

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The demand for good judgment is high but the reality is most people receive very little formal training in what good judgment looks like or what may threaten good judgment. KPMG developed a training tool to enhance the professional judgment for all levels of audit professionals. The need for this training is a result of the economy, the use of fair value measurements, and changes in regulations. We all have a responsibility to improve our own judgment, both at work and in our personal lives. To make a good decision, you need to use judgment, since there will most likely be a number of solutions. The Professional Judgment Framework developed by KPMG serves as a guide the judgment process. “The Framework includes a number of components, such as mindset, consultation, knowledge and professional standards, influences and biases, reflection, and coaching” (Chevalier, 2013). The authors of the paper have provided five steps in their professional judgment process. The first step is to clarify issues and objectives by defining the problem and identifying the fundamental objectives. “In evaluating the data collected, the audit staff must eliminate the less important issues and focus on the problems” [ (Hefferon, 1980) ]. Identifying and clarifying the right problem can be difficult. Ask the right questions by asking what is important and also asking why something is important. Too often we offer solutions without taking the time to understand the true nature of the business problem that has to be solved. It is extremely important to take the time to evaluate the quality information because it is essential to identify the right problem. Once you have clarified the objectives the next step is to determine how you can achieve the objectives. We do this by