At their meeting on March 13-17, 2017, the IAASB discussed the ISA 540 Task Force’s proposals relating to the revision of ISA 540, including proposals related to the threshold for the work effort, referring directly to inherent risk, and the development of auditor’s point estimate and ranges. The IAASB also agreed to include in the proposed ISA two appendices to better explain how accounting standards can give rise to accounting estimates and the implications of complexity, the need for the use of judgment by management, and estimation uncertainty on the auditor’s risk assessment and related responses. The IAASB approved the release of proposed ISA 540 (Revised) for public exposure, including related conforming amendments to other International Standards. The Exposure Draft will be issued in mid-April, for comment by August 1, 2017.

Review the summary on the IAASB's Web site.