Username:
Password:
Forgot Password?

ASA 540 Audit of Accounting Estimates

Print this Article Print this Article
Email this Article

Main Features 
This Auditing Standard establishes mandatory requirements and provides explanatory guidance on the audit of accounting estimates contained in a financial report. This Auditing Standard requires the auditor to:

  1. design and perform audit procedures responsive to the risk of material misstatement of an entity’s accounting estimates;
    2.  
  2. evaluate the results of audit procedures; and
    3.  
  3. obtain management representation on the reasonableness of significant assumptions used in making accounting estimates.
Operative Date 
This Auditing Standard is operative for financial reporting periods commencing on or after 1 July 2006. 
 
 
This excerpt is taken from ASA 540, which is available for download on the AUASB website