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AASB Response – Auditing Accounting Estimates and Related Disclosures

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Aug 17, 2017

On August 17, 2017, the Auditing and Assurance Standards Board (AASB) released a comment letter responding to the IAASB’s Exposure Draft.

Overall, the AASB are supportive of many of the proposals in the proposed International Standard on Auditing 540, Auditing Accounting Estimates and Related Disclosures (ED‐540). They feel, however, that for ED‐540 to be operational, further improvements are needed. The results of field testing conducted by Canadian practitioners showed that many had significant challenges with operationalizing the requirements in paragraphs 15 and 17‐19 in a manner that would achieve consistency of practice and appropriate use of the auditor’s professional judgment.

Review the response on the AASB's website.

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