The requirements of the applicable financial reporting framework may specify the approach to selecting management’s point estimate from the reasonably possible measurement outcomes. Financial reporting frameworks may recognise that the appropriate amount …

The auditor’s previous experience with the entity and from audit procedures performed in previous audits may provide the auditor with information that is relevant to the auditor’s determination of the nature and extent of risk assessment procedures, and …

For example, with respect to fair value estimates, AASB 13 [35]  indicates that, if multiple valuation techniques are used to measure fair value, the results (i.e., respective indications of fair value) shall be evaluated considering the reasonableness of …

The applicable financial reporting framework may prescribe disclosures or disclosure objectives related to accounting estimates, and some entities may choose to disclose additional information. These disclosures or disclosure objectives may address, for …

In some cases, the applicable financial reporting framework may require specific disclosures regarding estimation uncertainty, for example: The disclosure of information about the assumptions made about the future and other major sources of estimation …

Control activities relevant to the audit over management’s process for making accounting estimates (Ref: Para 13(i) ) …

The auditor’s judgement in identifying controls relevant to the audit, and therefore the need to evaluate the design of those controls and determine whether they have been implemented, relates to management’s process described in paragraph 13(h)(ii). The …

As part of obtaining an understanding of the control activities relevant to the audit, the auditor may consider: How management determines the appropriateness of the data used to develop the accounting estimates, including when management uses an external …

When management makes extensive use of information technology in making an accounting estimate, controls relevant to the audit are likely to include general IT controls and application controls. Such controls may address risks related to: Whether the …

In some industries, such as banking or insurance, the term governance may be used to describe activities within the control environment, monitoring of controls, and other components of internal control, as described in ASA 315. …