THE CUMULATIVE EFFECT OF THE LOCAL AUDITOR’S JUDGMENTS

Abstract

The Cumulative Effect of the Local Auditor’s Judgments The article is aimed at studying the influence of the local auditor’s judgments on the formation of independent audit thought and building a conceptual model for grouping the results of the local auditor’s judgments to form an audit report. The authors analyze interpretations of the concept of «auditor’s opinion» by individual scholars and consider expedient a normative fixation of this concept; the basic components on which the professional judgment of auditor is based are allocated and a generalized definition of the given concept is formulated; the stages of audit, which provide auditor with an opportunity to develop a professional judgment are considered together with the factors influencing its developing; the list of decisions, in the process of adoption of which application of a professional judgment is necessitated, is expanded; recommendations on application of individual procedures by auditors in the process of evaluation of the identified distortions of financial statements are proposed; a generalization of the results of the local judgments on separate components of audit process, which are carried out by auditor, is made and the place of professional judgment in the process of assessment of achievement of common audit objectives is defined; a conceptual model of generalization of results of the local auditor’s judgments is constructed.