Professional judgement

Professional judgement is the application of relevant training, knowledge and experience to make informed decisions appropriate to the circumstances of an audit. It is needed for materiality, risk assessment, evidence evaluation and reporting, and should be supported and documented. Judgement draws on the applicable accounting and auditing framework and the facts available at the time. It does not excuse a conclusion unsupported by evidence or non-compliance with relevant requirements; another experienced auditor should be able to understand the reasoning from the documentation.