CHAPTER 4: Ethics and professional judgment in accounting
The underlying behavioral characteristics of good judgment
Personal traits and behaviors are very closely related to a good judgment. Being skeptic leads to questioning and doubting may lead one to find more accurate answers to vital things that may inform the judgment. Being focused and objective also increases chances of maintaining accurate and good judgments. Attitudes and beliefs are personal traits that influence and have an impact on good judgments .This values determine the manner in which one can handle a judgment .personal values are responsible for creating awareness and finally passing a good judgment .therefore, sticking to the objectives and using ones value a system enhance a good judgment .skeptics assist in shaping the mindset of an auditor in line with independent thinking. A person’s value system is what impacts the whole judgment and explain the arrival into the good judgment (slide 1& 2).
The link between moral reasoning methods and making professional judgments is that moral reasoning provides direction and guidance that inhibits loss of objectivity which then can enhance decision making that amount to a professional judgment .Moral reasoning maintains values, personal beliefs that are useful for making professional judgments. Moral reasoning helps in changing theory into moral practicality. It also signals on what one is supposed to do when faced with a dilemma. Considerations are likely to be influence by the moral compass of the individual (slide 5, 6, 7).
Cognitive dissonance is helps to bring together conflicting concepts, belief and behaviors to produce a professional judgment.it harmonizes opposing concepts to come up with a reliable a credible judgment that is not biased. Cognitive dissonance ensures and confirms the manner in which a professional judgment was made. It enables critical thinking and deductive reasoning of the actions behind the professional judgment and can evaluated .Cognitive dissonance influences thinking patterns of an individual. Thinking often shifts and impacts judgment in totality .Cognitive dissonance does not only influence thinking but the whole process of making decisions that eventually have an impact on the final decision. Hence cognitive dissonance I influences professional judgment through thinking patterns that later affect judgment (slide 7).
The role of professional judgment in making ethical decisions is that it centralizes and frames the reasoning and factors that led to that particular judgment. Professional judgment components can be reaped apart to come up with things required for ethical decisions. Professional judgment provides direction that van be used to in making ethical decisions which suit a y situation.it also applies various knowledge and experiences absorbed from different accounting sectors slide 6 & 7).
The AICPA code addresses issues of professional judgment in the following ways. It includes the citizen’s interests and other stakeholders.it has a framework that see to it that measures and safeguards are put in place to curb any violations. Any breach against its rules and regulations is rectified in all the areas (slide 12 & 13).
When a professional judgment differs with its rule and regulations it has the capacity to differ and follow its own regulations. It also defines and determines whether a professional judgment is good enough to eliminate any threat in the near future. AICPA code provides a platform that can be used to evaluate a judgment if it’s truly good or biased. In addition to this it protects the entire system from bad decisions and creates awareness where necessary (slide 12 & 13).
Works cited
M.C. Graw Hill Education .Ethics And Professional Judgment in Accounting. (2017).
