Auditing Estimates (CAS 540)

Many times, the auditor faces challenges in how to apply the standards in practice. This course will help auditors appreciate CAS 540 requirements and how to apply them. The session will walk through a practical five-step approach to identifying and assessing the risk of material misstatement related to accounting estimates, designing and performing risk responses and concluding and reporting. Topics also include guidance on evaluating misstatements and documentation requirements.

Through real-world scenarios and illustrative examples, auditors will have a better understanding of the requirements and be able to audit accounting estimates and related disclosures in an effective and efficient manner.

By the end of the session, participants will be able to:

• Understand CAS requirements for auditing accounting estimates and related disclosures
• Appreciate key concepts related to estimates including inherent risk factors
• Understand the fundamentals required in designing and performing risk responses
• Follow an efficient 5-step approach to auditing estimates
• Implement best practices for obtaining and evaluating audit evidence
• Document and conclude on results

Instructor(s): Kirsten Albo, FCPA, FCA, ICD.D, President of ASK KSA Consulting Inc.