This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice ( for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

CAS 540, Auditing Accounting Estimates, including Fair Value Accounting Estimates, and Related Disclosures

Ef­fec­tive date:

Effective for audits of financial statements for periods ending on or after December 14, 2010, except for subsequent amendments.


CAS 540, Auditing Accounting Estimates, including Fair Value Accounting Estimates, and Related Disclosures, deals with the auditor's responsibilities relating to accounting estimates, including fair value accounting estimates, and related disclosures in an audit of financial statements. Specifically, it expands on how CAS 315, Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment, and CAS 330, The Auditor's Responses to Assessed Risks, and other relevant CASs are to be applied in relation to accounting estimates. It also includes requirements and guidance on misstatements of individual accounting estimates, and indicators of possible management bias.

His­tory of CAS 540




March 2019

The amendments incorporate changes to establish more robust requirements and appropriately detailed guidance to foster audit quality by driving auditors to perform appropriate procedures in relation to accounting estimates and related disclosures.

The amendments are effective for audits of financial statements for periods beginning on or after December 15, 2019. Earlier application is permitted.

Note: Our history summary does not take into account consequential amendments made as the result of other projects.

Amendments under consideration

  • None

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.