DefinitionsDefinitions

Definitions

1. For the purposes of this Auditing Standard, the following terms have the meanings attributed below:
   1. Accounting estimate means an approximation of a monetary amount in the absence of a precise means of measurement. This term is used for an amount measured at fair value where there is estimation uncertainty, as well as for other amounts that require estimation. Where this Auditing Standard addresses only accounting estimates involving measurement at fair value, the term “fair value accounting estimates” is used.
   2. Auditor’s point estimate or auditor’s range means the amount, or range of amounts, respectively, derived from audit evidence for use in evaluating management’s point estimate.
   3. Estimation uncertainty means the susceptibility of an accounting estimate and related disclosures to an inherent lack of precision in its measurement.
   4. Management bias means a lack of neutrality by management in the preparation of information.
   5. Management’s point estimate means the amount selected by management for recognition or disclosure in the financial report as an accounting estimate.
   6. Outcome of an accounting estimate means the actual monetary amount which results from the resolution of the underlying transaction(s), event(s) or condition(s) addressed by the accounting estimate.