ASIC and others have identified that the auditing of accounting estimates and disclosures continues to be poor. This session will identify and address these concerns, review the relationship between planning and auditing accounting estimates, and the key principles in ASA 540. Future sessions will address the details of ASA 540.
The session looks at:
- What has ASIC and other inspection programs revealed about the audit efforts on accounting estimates
- The relationship between ASA 315 and ASA 540
- The recent changes to ASA 540 resulting from ASA 315 consequential amendments
- Key principles of ASA 540 – inherent risk factors, control risk, professional scepticism, concept of ‘reasonable’, and disclosure, and
- Improving audit documentation.