The greater the degree to which an accounting estimate is subject to estimation uncertainty, the more likely the risks of material misstatement will be assessed as higher and therefore the more persuasive the audit evidence needs to be to determine, in …

If the auditor’s consideration of estimation uncertainty associated with an accounting estimate, and its related disclosure, is a matter that required significant auditor attention, then this may constitute a key audit matter. …

When Management Has Not Taken Appropriate Steps to Understand and Address Estimation Uncertainty (Ref: Para.  27 ) …

When the auditor determines that management has not taken appropriate steps to understand and address estimation uncertainty, additional procedures that the auditor may request management to perform to understand estimation uncertainty may include, for …

In considering whether it is practicable to develop a point estimate or range, matters the auditor may need to take into account include whether the auditor could do so without compromising independence requirements. This may include relevant ethical …

If, after considering management’s response, the auditor determines that it is not practicable to develop an auditor’s point estimate or range, the auditor is required to evaluate the implications for the audit or the auditor’s opinion on the financial …

Developing an Auditor’s Point Estimate or Using an Auditor’s Range (Ref: Para.  28–29 ) …

Developing an auditor’s point estimate or range to evaluate management’s point estimate and related disclosures about estimation uncertainty may be an appropriate approach when, for example: The auditor’s review of similar accounting estimates made in the …

The decision to develop a point estimate or range also may be influenced by the applicable financial reporting framework, which may prescribe the point estimate that is to be used after consideration of the alternative outcomes and assumptions, or …

The auditor’s decision as to whether to develop a point estimate rather than a range may depend on the nature of the estimate and the auditor’s judgement in the circumstances. For example, the nature of the estimate may be such that there is expected to …