31386 paragraphs found
A difference between the outcome of an accounting estimate and the amount recognised in the previous period’s financial report does not necessarily represent a misstatement of the previous period’s financial report. However, such a difference may …
Matters that may affect the auditor’s determination of whether the engagement team requires specialised skills or knowledge, include, for example: [43] The nature of the accounting estimates for a particular business or industry (for example, mineral …
The auditor may not possess the specialised skills or knowledge necessary when the matter involved is in a field other than accounting or auditing (for example, valuation skills) and may need to use an auditor’s expert. …
Many accounting estimates do not require the application of specialised skills or knowledge. For example, specialised skills or knowledge may not be needed for a simple inventory obsolescence calculation. However, for example, for expected credit losses …
Identifying and assessing risks of material misstatement at the assertion level relating to accounting estimates is important for all accounting estimates, including not only those that are recognised in the financial report, but also those that are …
Paragraph A42 of ASA 200 states that the Auditing Standards typically refer to the “risks of material misstatement” rather than to inherent risk and control risk separately. ASA 315 requires a separate assessment of inherent risk and control risk to …
In identifying the risks of material misstatement and in assessing inherent risk for accounting estimates in accordance with ASA 315, [47] the auditor is required to take into account the inherent risk factors that affect susceptibility to misstatement of …
The reasons for the auditor’s assessment of inherent risk at the assertion level may result from one or more of the inherent risk factors of estimation uncertainty, complexity, subjectivity or other inherent risk factors. For example: Accounting estimates …