IAASB issues Staff Audit Practice Alert re Auditing Accounting Estimates due to COVID19

IAASB issues Staff Audit Practice Alert re Auditing Accounting Estimates due to COVID19 logo

The COVID-19 pandemic has widespread global impacts on economies, markets and businesses, giving rise to significant volatility and considerable uncertainty. In such unpredictable circumstances, auditors will need to focus on the potential impacts of this volatility and uncertainty when auditing accounting estimates.

Preparers, those charged with governance and users of financial statements may find this publication helpful in understanding the auditor’s responsibilities in relation to auditing accounting estimates and related disclosures. It is based on the requirements and guidance in ISA 540 (Revised), which is effective for audits of financial statements beginning on or after December 15, 2019. ISA 540 (Revised) includes more detailed requirements and application material relating to methods (including models), assumptions and data, and the consideration of inherent risk factors that may give rise to risks of material misstatement of an accounting estimate.

Click here to download the 13-page staff alert.

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