In some circumstances, obtaining audit evidence from events occurring up to the date of the auditor’s report may provide sufficient appropriate audit evidence to address the risks of material misstatement. For example, sale of the complete inventory of a …

For some accounting estimates, events occurring up to the date of the auditor’s report are unlikely to provide sufficient appropriate audit evidence regarding the accounting estimate. For example, the conditions or events relating to some accounting …

Even if the auditor decides not to undertake this testing approach in respect of specific accounting estimates, the auditor is required to comply with ASA 560. ASA 560 requires the auditor to perform audit procedures designed to obtain sufficient …

Testing How Management Made the Accounting Estimate (Ref. Para. 22 ) …

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 …

Scalability …