Accounting estimates play a critical role in financial reporting and often pose challenges for auditors due to their inherent uncertainty. The revised ISA 540 introduces new requirements that emphasize the importance of a detailed understanding of the entity, its environment, and controls over estimates. The revised standard also increases the auditor’s work effort, requiring more robust documentation and evaluation procedures.
Understanding ISA 540 is essential to conducting high-quality audits. Auditors need to ensure that accounting estimates are reasonable, free of management bias, and that potential risks of material misstatements are addressed effectively.
This course offers practical insights into the revised ISA 540, guiding participants on how to audit accounting estimates efficiently while meeting the latest requirements.
This course combines theoretical learning with practical case studies, giving participants the opportunity to apply audit procedures on accounting estimates. Hands-on exercises will enhance participants’ understanding of the new requirements and help them develop audit strategies aligned with ISA 540.
By the end of this course, participants will have the skills and confidence to effectively audit accounting estimates, ensuring compliance with the latest ISA standards and delivering high-quality audit results
Understanding the Entity and Identifying Estimates
Understanding and Documenting Controls over Estimates
Documenting Methods, Assumptions, and Data Sources
Identifying Estimation Uncertainty and Risks of Material Misstatement
Performing Audit Procedures on Estimates
