193 paragraphs found
ASA 540, paragraph 13(d) , describes requirements when the auditor develops a range to evaluate management’s point estimate. Valuation techniques developed by third parties and used by the auditor may, in some circumstances be considered the work of an …
See, for example, paragraph 15 of ASA 540 for requirements relative to the auditor’s evaluation of management’s assumption regarding significant …
It is likely that in testing the inputs used in an entity’s valuation methodology, [33] for example, where such inputs are categorised in the fair value hierarchy, the auditor will also be obtaining evidence to support the disclosures required by the …
An assumption used in a model may be deemed to be significant if a reasonable variation in the assumption would materially affect the measurement of the financial instrument. [34] Management may have considered alternative assumptions or outcomes by …
Audit procedures to test the assumptions used by management, including those used as inputs to models, may include evaluating: Whether, and if so, how, management has incorporated market inputs into the development of assumptions, as it is generally …
The auditor’s consideration of judgements about the future is based on information available at the time at which the judgement is made. Subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they …
In some cases, the discount rate in a present value calculation may be adjusted to account for the uncertainties in the valuation, rather than adjusting each assumption. In such cases, an auditor’s procedures may focus on the discount rate, by looking at …
As discussed in Section I, management may engage a valuation expert to value some or all of their securities. Such experts may be brokers, investment bankers, pricing services that also provide expert valuation services, or other specialised valuation …
Paragraph 8 of ASA 500 contains requirements for the auditor when evaluating evidence from an expert engaged by management. The extent of the auditor’s procedures in relation to a management’s expert and that expert’s work depend on the significance of …