ASA 540 - Audit of Accounting Estimates - April 2006
Conformity with International Standards Conformity with International Standards on Auditing
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Conformity with International Standards on Auditing
35 Except as noted below, this Auditing Standard conforms with International Standard on Auditing ISA 540 Audit of Accounting Estimates, issued by the International Auditing and Assurance Standards Board of the International Federation of Accountants. The main differences between this Auditing Standard and ISA 540 are:
- This Auditing Standard includes the following specific mandatory requirement that is not included in ISA 540:
The auditor shall endeavour to obtain written representations from management regarding the reasonableness of significant assumptions used by them in making accounting estimates (paragraph 32).
- This Auditing Standard includes explanatory guidance on management representations that is not included in ISA 540 (paragraphs 33 and 34).
- This Auditing Standard includes Appendix 1 which explains the processes involved in developing accounting estimates. ISA 540 does not include this Appendix.
Compliance with this Auditing Standard enables compliance with ISA 540.