ISA 540. Auditing accounting estimates, including fair value accounting estimates, and related disclosures

Abstract

The preparation of the financial statements is, among other circumstances, the quantification of items (assets, liabilities, expenses...) approximately, lacking at the time of the formulation of the necessary information to do so. The ISA 540 establishes the responsibility of the auditor in the verification of the reasonableness of the accounting estimates contained in the financial statements, as well as the procedures which should and can be used for this purpose.