ISSAI Executive Summaries
ISSAI 1540 – Auditing Accounting Estimates, including Fair Value Accounting Estimates and Related Disclosures
This Practice Note provides supplementary guidance on ISA 540 - Auditing Accounting Estimates, including Fair Value Accounting Estimates, and Related Disclosures.
Level 4: General Auditing Guidelines - General Auditing Guidelines on Financial Audit
Public sector external auditors
ISA 540 deals with the auditor's responsibilities relating to accounting estimates including fair value accounting estimates and related disclosures in an audit of financial statements. It also includes requirements and guidance on misstatements of individual accounting estimates and indicators of possible management bias.
|Scope - Content:||
The Practice Note provides additional guidance for public sector auditors related to
An Appendix to this ISA provides a general discussion of fair value measurements and disclosures under differential financial reporting frameworks.
|Author - Committee:||
INTOSAI Professional Standards Committee – Financial Audit Subcommittee
Approved at XXth Congress of INTOSAI, Johannesburg 2010
|Related Documents - Executive Summaries:|
|Related Documents - ISSAI Full Versions:|
|Related Documents - Others:||
ISA 540 is applicable to auditors of public sector entities in their role as auditors of financial statements. It expands how ISA 315 (Identifying and Assessing the Risk of Material Misstatements through Understanding the Entity and its Environment) and ISA 330 (The Auditor's Responses to Assessed Risks) and other relevant ISA are to be applied in relation to accounting estimates.