Auditing Accounting Estimates - AASB

Date recorded:

At its meeting on July 19, 2017, the AASB reviewed comments received from Canadian stakeholders on the AASB’s Exposure Draft of proposed revisions to CAS 540. Issues raised by respondents and discussed by the Board included: scalability of the standard for application to estimates of all sizes and complexities; linkage of requirements in CAS 540 to CAS 315, Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment; effect of the proposed risk factors on inherent risk assessment for accounting estimates; and challenges identified during field testing of the proposed standard. The Board also discussed its draft response letter to the IAASB’s Exposure Draft with the same title. A final draft of the response will be reviewed by the Board prior to submission in early August.

Review the executive summary on the AASB's Web site.

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