Dates and location
Pricing
Hours
Dates and location
Pricing
Hours
Description
Whether an entity is small or large, complex or not, management has to make an estimate when monetary amounts are not supported by direct observable evidence. Accounting estimates all have a level of estimation uncertainty and varying degrees of subjectivity and complexity. The characteristics of accounting estimate have critical implications in an audit as the effects of measurement uncertainty and inherent risk factors affect their susceptibility to misstatement.
Revised CAS 540 Auditing Accounting Estimates and Related Disclosures addresses auditing estimates related to both complex and less complex estimates. There are increased auditor’s responsibilities relating to auditing accounting estimates and related disclosures. It is critical for auditors to understand the revised requirements and how to apply them in an audit.
This course will explore the requirements of Revised CAS 540 Auditing Accounting Estimates and Related Disclosures for both complex and less complex estimates to help practitioners be mindful of the standard and its requirements. It is important that auditors understand the requirements of Revised CAS 540 in order to conduct a quality audit. Through the use of discussion, case studies and examples of both complex and less complex estimates, participants will be able to identify the auditor’s responsibilities related to auditing accounting estimates and related disclosures. This course will increase an auditor’s understanding of how to apply the standard when designing and performing procedures for audit engagements.
The course addresses key aspects of the revised standard and provides an approach to meeting its requirements. The course starts by delving into the characteristics of estimates and what drives conclusions on whether estimates are complex or less complex. The material outlines required risk assessment procedures including risk assessment for both inherent risk and control risk and concluding whether the risk is a significant risk. The course will then go into the three possible testing approaches in performing further audit procedures on accounting estimates. Finally, the course will address other requirements such as considering management bias, performing stand-back procedures and incorporating professional skepticism and meeting documentation standards.
There will be a final quiz to test your knowledge at the end of the course.TOPICS INCLUDE
- Introduction – Overview of CAS 540
- Risk assessment procedures: Requirements related to understanding the entity and its system of internal control related to estimates, performing a retrospective review
- Identifying and assessing the risk of material misstatement: Requirements related to identifying and assessing risks at the assertion level, separately assessing inherent and control risks and performing required risk assessment procedures when risk has been assessed as significant
- Responses to assessed risk of material misstatement: Requirements related to the three testing approaches being subsequent events, testing management’s estimate and/or developing an auditor’s point estimate or range
- Other considerations: Requirements related to evaluating management bias, obtaining written representation from management, communicating with TCWG and documentation
- Documentation requirements
NOTE: No updates or changes were made to the 2023 version of this course. If you completed the course in 2022, please be advised the 2023 course material has not changed. If you have any questions, please contact pdevents@cpaontario.ca.
LEARNING OBJECTIVES
WHO WILL BENEFIT
Practitioners who perform audit engagements and want to ensure they meet the requirements of Revised CAS 540 in an effective and efficient manner
How to Access The Course
To access the course please visit our BlackBoard site, and log-in using the same login and password used for the Registration Portal.
Please allow up to 15 minutes after registration for the course to appear on your BlackBoard page.
Registration, cancellation, withdrawal and all other CPA Ontario PD policies can be found here.