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Running head: DISTINGUISH BETWEEN PERSONAL AND PROFESSIONAL 1
JUDGMENT
Distinguish Between Personal and Professional Judgment
Joe R. Estrada
Liberty University
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DISTINGUISH BETWEEN PERSONAL AND PROFESSIONAL JUDGMENT
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Sharon, I agree with your assessment in that professional judgment should be based
on fact and not perception. Meaning there are rules and standards that accountants must base
their professional judgement decisions. Allow me to expand on what you have already
thoughtfully have described as the difference between personal and professional judgment.
Personal and Professional Judgment
Effective judgment skills are integral to avoiding errors in the accounting sector
(Duska, Duska & Ragatz, 2011). It is a process that entails an evaluation of economic
variables before actually making a conclusion. The method of weighing between options
demands psychological consciousness to deploy cognitive capabilities. Being wises is also
another aspect to consider to arrive at the most sensible conclusions (Doolan, 2013).
Therefore, let’s discuss the contrasts between personal and professional judgmental concepts
at the same time analyzing how professional judgment is used in solving ethical accounting
dilemmas.
Arguably, professional judgment in accounting involves the application of relevant
knowledge, skills, training, and experience while availing accounting auditing and ethical
standards in giving solutions (Doolan, 2013). Individuals make an informed decision based
on practical evidence. In contrast personal judgment considers the personal assessment of
accounting practices while giving decisions. Personal judgment is majorly based on personal
opinions rather than solid facts. In other words, professional judgment gives proof while
personal judgment relies on perceptions (Duska et al., 2011).
The Use of Professional Judgment in Solving Accounting Ethics Dilemmas
Certainly with the immediate increase in the complex nature of business;
accounting firms rely a lot on professional judgment strategies to solve ethical dilemmas
(Geisler, 2010). There is a more profound and need for a transparent, reliable financial
handling structures today than before. Managing financial statements requires careful
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implementation of thoughts based on experience, evidence, and knowledge in the specific
area of specialization (Doolan, 2013). Accountants are positioned strategically to consider all
the three aspects in making decisions. In turn, safe, ethical and competent services will be
experienced.
Unlike personal judgment approach which is based on an individual's opinion to give
solutions professionally, accountants arrive at solutions after conducting a thorough evidence-
based analysis (Duska et al., 2011). Applying skills, knowledge, and experience uniquely
helps in proposing the most reliable decision. Ethical issues in accounting appear complicated
and somehow confusing (Doolan, 2013). Therefore before giving a judgment, it is moral to
incorporate professional standards, ethical principles as well as laws in developing just
decisions.
In addition, professional judgment can be relevant in assessing the accounting
practices competence and set limits to mitigate risks (Geisler, 2010). In the process skills and
the knowledge applied can aid in taking the most responsible actions to counter controversy
or develop ways that can facilitate the continuity of ethical accounting practices. Since this
will be a step by step process, the negative attributes in accounting will be replaced though in
a slow process (Doolan, 2013). Besides, professional attitude focuses on upgrading wisdom
and positive ruling skills
Conclusion
In a nutshell, the ability to make sound judgments is an essential aspect that helps solve
controversial aspects in accounting ethics (Geisler, 2010). Forming an opinion or rather
decision based on a carefully thought process helps find justices and at the same time reduced
biased actions. So therefore, “In everything, do to others what you would have them do to
you, for this sums up the Law and the Prophets” (Matthew 7:12, NIV). Personal judgment
seems a bit unethical since in most cases the individuals can make decisions unfairly. In
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contrast, professional judgment aspects consider both the strengths and weakness of both
parties before giving a verdict (Duska et al., 2011). Several accounting firms rely on
professional judgment strategies to attain significant performances.
References
Doolan, A. L. (2013). Ethical Issues in Accounting: A Teaching Guide. American Journal of
Business Education, 6(1), p. 129-140. Retrieved from: Retrieved from
http://ezproxy.liberty.edu/login?url=https://search-proquest-
com.ezproxy.liberty.edu/docview/1418449686?accountid=12085
Duska, R., Duska, B., & Ragatz, J. (2011). Accounting ethics (2nd ed.). Malden, MA: Wiley-
Blackwell a John Wiley & Sons, Ltd., Publication.
Geisler, N. L. (2010). Christian ethics: Contemporary issues and options. Grand Rapids, MI:
Baker Academic.
Knechel, W. R., & Salterio, S. E. (2016). Auditing: Assurance and risk (4th ed.). Routledge.
.
