31386 paragraphs found
Testing how management made the accounting estimate may be an appropriate approach when, for example: The auditor’s review of similar accounting estimates made in the prior period financial report suggests that management’s current period process is …
Changes in Methods, Significant Assumptions and the Data from Prior Periods (Ref: Para. 23(a) , 24(a) , 25(a) ) …
When a change from prior periods in a method, significant assumption, or the data is not based on new circumstances or new information, or when significant assumptions are inconsistent with each other and with those used in other accounting estimates, or …
Indicators of Management Bias (Ref: Para. 23(b) , 24(b) , 25(b) ) …
When the auditor identifies indicators of possible management bias, the auditor may need a further discussion with management and may need to reconsider whether sufficient appropriate audit evidence has been obtained that the method, assumptions and data …
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 …
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 …