12. Professional judgement is defined as

(a)The application of relevant training, knowledge and experience, within the context provided by auditing, acounting and ethical standards, in making informed decisions about the courses of action that are appropriate in the circumstances of the audit engagement.

(b) An attitude to avoid significant mistakes which could influence the economic decisions of users taken on the basis of the financial statements.

(c) Decision making about the requirements of the accounting profession.

(d) An attitude that includes a questioning mind, being alert to conditions which may indicate possible misstatement due to error or fraud, and a critical assessment of evidence.




















Ans: (a)The application of relevant training, knowledge and experience, within the context provided by auditing, acounting and ethical standards, in making informed decisions about the courses of action that are appropriate in the circumstances of the audit engagement.