ISA 540 - AUDITING ACCOUNTING ESTIMATES AND RELATED DISCLOSURES

 ISA 540 deals with the auditor’s responsibilities relating to accounting estimates and related disclosures in an audit of financial statements. 

This ISA defines  requirements relating to risk assessment procedures and related activities connected with accounting estimates, identification of the risks of material misstatement, responses to the assessed risks of material misstatement, disclosures related to accounting estimates, indicators of possible management bias and the evaluation of misstatements of accounting estimates and related disclosures.

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