In applying ASA 330 to accounting estimates, [19] the auditor shall evaluate, based on the audit procedures performed and audit evidence obtained, whether: (Ref: Para A137–A138 ) The assessments of the risks of material misstatement at the assertion level …

In making the evaluation required by paragraph 33(c), the auditor shall take into account all relevant audit evidence obtained, whether corroborative or contradictory. [20]   If the auditor is unable to obtain sufficient appropriate audit evidence, the …

Risk assessment procedures may include observation or inspection of the following: The entity’s operations. Internal documents (such as business plans and strategies), records, and internal control manuals. Reports prepared by management (such as …

Determining Whether the Accounting Estimates are Reasonable or Misstated …

The auditor shall determine whether the accounting estimates and related disclosures are reasonable in the context of the applicable financial reporting framework, or are misstated. ASA 450 [22]  provides guidance on how the auditor may distinguish …

In relation to accounting estimates, the auditor shall evaluate: In the case of a fair presentation framework, whether management has included disclosures, beyond those specifically required by the framework, that are necessary to achieve the fair …

The auditor shall request written representations from management [25]   and, when appropriate, those charged with governance about whether the methods, significant assumptions and the data used in making the accounting estimates and the related …

In applying ASA 260 [26]  and ASA 265, [27]  the auditor is required to communicate with those charged with governance or management about certain matters, including significant qualitative aspects of the entity’s accounting practices and significant …

The auditor shall include in the audit documentation: [28]   (Ref: Para. A149–A152 ) Key elements of the auditor’s understanding of the entity and its environment, including the entity’s internal control related to the entity’s accounting estimates; The …