Event Description

Accounting estimates are an approximation of a monetary amount in the absence of a precise means of measurement. The risks of material misstatement for areas of estimation tend to be higher due to the dependence on future events and the intended actions of management. This module will discuss tips and techniques for gathering sufficient appropriate audit evidence to support conclusions related to accounting estimates.

Objectives

• List typical areas of estimation and related audit risks
• Explain how to link the assessed risk of material misstatement to a detailed audit plan
• Recall the importance of challenging management’s assumptions when auditing estimates
• Describe fair value modeling techniques, including for non-readily marketable investments
• Describe how to properly evaluate the sufficiency and appropriateness of audit evidence and resulting conclusions when there is accounting uncertainty