ASA 545 - Auditing Fair Value Measurements and Disclosures - April 2006
Evaluating the Results of Audit ProcedurEvaluating the Results of Audit Procedures
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Evaluating the Results of Audit Procedures
70 In making a final assessment of whether the fair value measurements and disclosures in the financial report are in accordance with the entity’s applicable financial reporting framework, the auditor shall evaluate the sufficiency and appropriateness of the audit evidence obtained as well as the consistency of that audit evidence with other evidence obtained and evaluated during the audit.
71 When assessing whether the fair value measurements and disclosures in the financial report are in accordance with the entity’s applicable financial reporting framework, under paragraph 70 of this Auditing Standard, the auditor needs to evaluate the consistency of the information and audit evidence obtained during the audit of fair value measurements with other audit evidence obtained during the audit, in the context of the financial report taken as a whole. For example, the auditor considers whether there is or should be a relationship or correlation between the interest rates used to discount estimated future cash flows in determining the fair value of an investment property and interest rates on borrowings currently being incurred by the entity to acquire investment property.