Monthly Archives: January 2016

Problem Solving and Professional Judgment

This is one of the competency, CPA had to come across in real work situation. As a controller or as a CEO, CPA had to take several decisions to run the company smoothly to reward its stakeholders.
He is required to use professional judgment from the variety of collected information. CPA students will face this competency in their final exam in case analysis.

Following process is important for resolving this issue-

• Define the problem and obtain initial understanding around the issue
• Divide the problem in different parts or sub-heading to facilitate in-depth analysis
• Exercise professional judgment in order of priority. Examine the sensitivity of the issue and
its material impact
• Evolve multiple options and or a single option
• Perform appropriate analysis
• Collect variety of relevant information
• Integrate information to find the right solution
• Recommend and then justify the conclusion from the collected case facts, develop decision
criteria and then finally recommend the right solution to take correct management decision

Student should follow above approach for solving this competency in the exam. Problem should be with integrative effect affecting other course area if any from financial and non-financial information.