An enterprise shall exercise prudence in recognition, measurement and reporting of transactions or events. It shall not overstate assets or income nor understate liabilities or expenses.

企业对交易或者事项进行会计确认、计量和报告应当保持应有的谨慎，不应高估资产或者收益、低估负债或者费用。

youdao

But it does mean that lawmakers should exercise some prudence and judgment when deciding tax policy.

FORBES: A Laffer Curve Warning about the Economy and Tax Revenue for President Obama and other Class Warriors

If bank depositors, for instance, are assured that their savings are safe no matter what, they will exercise no care in choosing their bank, and a crucial discipline over the prudence of bank lending is lost.

ECONOMIST: Kill or cure?