CTHRepealedLegislation
ASA 540 - Audit of Accounting Estimates - April 2006
Use of an Independent EstimateUse of an Independent Estimate
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Use of an Independent Estimate
26 The auditor may make or obtain an independent estimate and compare it with the accounting estimate prepared by management. When using an independent estimate the auditor ordinarily evaluates the data, considers the assumptions and performs audit procedures on the calculation procedures used in its development. It may also be appropriate to compare accounting estimates made for prior periods with actual results of those periods.