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Running head: PERSONAL AND PROFESSIONAL JUDGMENT 1
Personal and Professional Judgment
Joe R. Estrada
Liberty University
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PERSONAL AND PROFESSIONAL JUDGMENT 2
Distinguish between personal and Professional Judgment.
Personal judgment is a person’s self-centered ability to make sensible conclusions or
reach important decisions. Personal judgment is influenced by personal values, which are
primarily instilled by the parents or society. Most of these values are learned from childhood and
stay with the individual to adulthood. Professional judgment is a person’s ability to reach
considerable decisions in a professional setting (Wang & Calvano, 2015). Professional judgment
emanate from professional values and code of conduct. These values are introduced to an
individual when they are grown-ups, and they are specific to a particular profession. The primary
difference between the two types of judgment is the strictness under which the decisions are
made. As professional values drive professional judgment, they have to be established in a
particular way as a company, or a professional organization makes them (Westwood, 2016). On
the other hand, personal judgments are less strict in their execution as they are guided by
personal values, which are more flexible than professional values.
Logically Present Arguments to justify the use of Professional Judgment in
Resolving Accounting Ethics Dilemmas.
There are several sources dilemma in accounting one of them being a conflict of interest.
Duska, Duska, & Ragatz (2011) state that “rule 102-2 describes a conflict of interest as a
situation in which certain relationships impair objectivity” (p.96). Conflict of interest primarily
occurs when there is a risk of bias for an accountant to derive personal benefits from their actions
or practice. For instance, an accountant who is a relative to the owners of an organization can
misrepresent financial statements to favor the needs of the owners. According to AICPA
professional code of conduct, a licensed professional accountant should be objective and
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PERSONAL AND PROFESSIONAL JUDGMENT 3
independent. Professionals are required to discharge their duties free of conflict of interests
(Brooks & Dunn, 2017). It is about being intellectually honest and impartial in providing
accounting services. It is recommended that if a professional is faced with conflicts of interest in
their practice, they should declare the conflict to relevant authorities and if the conflict is
expected to affect the outcome of the accounting services adversely, the professional should step
down.
The second source of ethical dilemma is the predicaments that arise due to client
confidentiality. An accountant may be working for two clients that are competitors and divulge
confidential information to one about the other on trade secrets. In addition, an accountant
sometimes can never be sure of what information to divulge and what to keep as confidential.
AICPA professional code of ethics requires professionals to undertake their professional
responsibilities with the highest sense of integrity (Kumar & Sharma, 2015). More so, they are
expected to act within the constraints of client confidentiality. If the professional is faced with a
situation where there are conflicting opinions, or there are no clear regulations or standards on
how to act, the professionals should ask themselves the question: “Am I doing the right thing?”
or “Am I doing what a person with integrity should do?” It is essential for the accounting
professional to be honest in his/her dealings and conduct due diligence to avoid divulging
confidential information to unauthorized personnel.
Lastly, pressure from management can cause lead to an ethical dilemma. The top
management may sometime need to have a healthy balance sheet for the purposes of attracting
investors and maintain credit ratings. The accountant may be forced to comply with the demands
of the top management in fabricating the results (Reinstein, Moehrle, & Reynolds‐Moehrle,
2006). Painting false picture of the company accounts is unethical. The AIPCA professional code
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PERSONAL AND PROFESSIONAL JUDGMENT 4
of conduct requires the professional to be independent when providing auditing services. The
professional should be impartial in providing accounting services and thus should not be
influenced by pressure from the management. The professional can report the matter to relevant
authorities or step down if need be if they are required to misrepresent financial statements.
Biblical Perspective
According to 2 Timothy 3:16-17 “16 All Scripture is God-breathed and is useful for
teaching, rebuking, correcting and training in righteousness, 17 so that the servant of God may be
thoroughly equipped for every good work” (NIV). In order words, scriptures prepares and directs
in preparing the righteous man/woman to do what is ethically right in all aspects of his/her life;
basically, Christian morals is addressed in all aspects of one’s life, whether its business or
personal.
References
Brooks, L., & Dunn, P. (2018). Business and professional ethics for directors, executives &
accountants (8th ed.). Boston, MA: Cengage Learning.
Duska, R., Duska, B., & Ragatz, J. (2011). Accounting ethics (2nd ed.). Malden, MA: Wiley-
Blackwell a John Wiley & Sons, Ltd., Publication.
Kumar, R., & Sharma, V. (2015). Auditing: Principles and Practice (3rd ed.). New Delhi: PHI
Learning Pvt. Ltd.
Reinstein, A., Moehrle, S.R., & Reynolds‐Moehrle, J. (2006) "Crime and punishment in the
marketplace: Accountants and business executives repeating history." Managerial
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Auditing Journal, (21)4, p.420-435. Retrieved from: https://doi-
org.ezproxy.liberty.edu/10.1108/02686900610661423
Wang, L. & Calvano, L. (2015) Is Business Ethics Education Effective? An Analysis of Gender,
Personal Ethical Perspectives, and Moral Judgment. Journal of Business Ethics,(126)4, p.
591-602. Retrieved from: https://doi-org.ezproxy.liberty.edu/10.1007/s10551-013-1973-y
Westwood, F. (2016). Exercising Professional Judgement: Mastering the Craft of Lawyering.
Market Harborough, UK: Troubador Publishing Ltd.
