CAS 540 Auditing Accounting Estimates and Related Disclosures outlines the requirements in auditing management’s estimates and related disclosures. Many times, auditors face challenges in how to apply the standards. This course will help auditors appreciate the CAS requirements and how to meet them.
Using a practical five-step approach, this course will help auditors identify and assess the risk of material misstatement related to accounting estimates, design and perform risk responses and conclude and report. Furthermore, auditors will leave with a solid approach to documentation.
Through real-world scenarios and illustrative examples, auditors will have a better understanding of the requirements and be able to audit accounting estimates and related disclosures in an effective and efficient manner.
By the end of the session participants will be able to:
- Understand CAS requirements for auditing accounting estimates and related disclosures
- Appreciate key concepts including inherent risk factors and how they impact estimates
- Follow an efficient 5-step approach to auditing estimates
- Explain risk assessment procedures
- Understand alternatives in obtaining sufficient appropriate evidence
- Implement best practices for evaluating audit evidence
- Document and conclude on results effectively and efficiently