When the engagement is carried out by a single individual, such as a sole practitioner (i.e., where an engagement team discussion would not be possible), consideration of the matters referred to in paragraphs A42 and A46 nonetheless may assist the auditor …

Management may evaluate alternative assumptions or outcomes of accounting estimates, which may be accomplished through a number of approaches depending on the circumstances. One possible approach is a sensitivity analysis. This might involve determining …

Through the knowledge obtained in performing the audit, the auditor may become aware of or may have obtained an understanding of assumptions used in other areas of the entity’s business. Such matters may include, for example, business prospects, …

The appropriateness of the significant assumptions in the context of the requirements of the applicable financial reporting framework may depend on management’s intent and ability to carry out certain courses of action. Management often documents plans …

Data (Ref: Para.  25(a) ) …

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

Relevance and reliability of the data (Ref: Para.  25(c) ) …

When using information produced by the entity, ASA 500 requires the auditor to evaluate whether the information is sufficiently reliable for the auditor’s purposes, including as necessary in the circumstances, to obtain audit evidence about the accuracy …

Complex legal or contractual terms (Ref: Para.  25(d) ) …

Procedures that the auditor may consider when the accounting estimate is based on complex legal or contractual terms include: Considering whether specialised skills or knowledge are needed to understand or interpret the contract; Enquiring of the entity’s …