31386 paragraphs found
The applicable financial reporting framework may prescribe the method to be used in making an accounting estimate. In many cases, however, the applicable financial reporting framework does not prescribe a single method, or the required measurement basis …
Management may design and implement specific controls around models used for making accounting estimates, whether management’s own model or an external model. When the model itself has an increased level of complexity or subjectivity, such as an expected …
Matters that the auditor may consider in obtaining an understanding of how management selected the assumptions used in making the accounting estimates include, for example: The basis for management’s selection and the documentation supporting the …
With respect to fair value accounting estimates, assumptions vary in terms of the sources of the data and the basis for the judgements to support them, as follows: Those that reflect what marketplace participants would use in pricing an asset or …
Assumptions used in making an accounting estimate are referred to as significant assumptions in this Auditing Standard if a reasonable variation in the assumption would materially affect the measurement of the accounting estimate. A sensitivity analysis …
When markets are inactive or illiquid, the auditor’s understanding of how management selects assumptions may include understanding whether management has: Implemented appropriate policies for adapting the application of the method in such circumstances. …