31386 paragraphs found
The relevance and significance of inherent risk factors may vary from one estimate to another. Accordingly, the inherent risk factors may, either individually or in combination, affect simple accounting estimates to a lesser degree and the auditor may …
Conversely, the inherent risk factors may, either individually or in combination, affect complex accounting estimates to a greater degree, and may lead the auditor to assess inherent risk at the higher end of the spectrum of inherent risk. For these …
Events occurring after the date of the financial report may provide additional information relevant to the auditor’s assessment of the risks of material misstatement at the assertion level. For example, the outcome of an accounting estimate may become …
The auditor’s assessment of control risk may be done in different ways depending on preferred audit techniques or methodologies. The control risk assessment may be expressed using qualitative categories (for example, control risk assessed as maximum, …
The auditor is required to determine whether information obtained from the auditor’s previous experience with the entity and from audit procedures performed in previous audits remains relevant and reliable, if the auditor intends to use that information …
In taking into account the degree to which the accounting estimate is subject to estimation uncertainty, the auditor may consider: Whether the applicable financial reporting framework requires: The use of a method to make the accounting estimate that …
The size of the amount recognised or disclosed in the financial report for an accounting estimate is not, in itself, an indicator of its susceptibility to misstatement because, for example, the accounting estimate may be …
In some circumstances, the estimation uncertainty may be so high that a reasonable accounting estimate cannot be made. The applicable financial reporting framework may preclude recognition of an item in the financial report, or its measurement at fair …
In some cases, the estimation uncertainty relating to an accounting estimate may cast significant doubt about the entity’s ability to continue as a going concern. ASA 570 [43] establishes requirements and provides guidance in such …