CONTENTS

PREFACE

AUTHORITY STATEMENT

Paragraphs

Application.................................. 1-2

Operative Date................................ 3

Introduction.................................. 4-7

The Nature of Accounting Estimates.................. 8-10

Audit Procedures Responsive to the Risk of Material Misstatement of the Entity’s Accounting Estimates 11-14

Review and Testing the Process Used by Management...... 15

Evaluation of Data and Consideration of Assumptions...... 16-22

Testing of Calculations.......................... 23

Comparison of Previous Accounting Estimates
with Actual Results............................ 24

Consideration of Management's Approval Procedures...... 25

Use of an Independent Estimate..................... 26

Review of Subsequent Events...................... 27

Evaluation of Results of Audit Procedures.............. 28-31

Management Representations...................... 32-34

Conformity with International Standards on Auditing...... 35

Appendix 1: The Process for Developing Accounting Estimates