Methods The selection of the method (Ref: Para.  23(a) ) …

Relevant considerations for the auditor regarding the appropriateness of the method selected in the context of the applicable financial reporting framework, and, if applicable, the appropriateness of changes from the prior period may include: Whether …

Complex modelling (Ref: Para.  23(d) ) …

A model, and the related method, is more likely to be complex when: Understanding and applying the method, including designing the model and selecting and using appropriate data and assumptions, requires specialised skills or knowledge; It is difficult to …

Matters that the auditor may consider when management uses a complex model include, for example, whether: The model is validated prior to usage or when there has been a change to the model, with periodic reviews to ensure it is still suitable for its …

Management may make adjustments to the output of the model to meet the requirements of the applicable financial reporting framework. In some industries these adjustments are referred to as overlays. In the case of fair value accounting estimates, it may …

Maintenance of integrity of significant assumptions and the data used in applying the method (Ref: Para.  23(e) ) …

Maintaining the integrity of significant assumptions and the data in applying the method refers to the maintenance of the accuracy and completeness of the data and assumptions through all stages of information processing. A failure to maintain such …

Significant Assumptions (Ref: Para.  24 ) …

Relevant considerations for the auditor regarding the appropriateness of the significant assumptions in the context of the applicable financial reporting framework, and, if applicable, the appropriateness of changes from the prior period may include: …