PSA-545 - (PSA 545) Auditing Standards and Practices...

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Philippine Standard on Auditing 545 AUDITING FAIR VALUE MEASUREMENTS AND DISCLOSURES Auditing Standards and Practices Council
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(PSA 545) PHILIPPINE STANDARD ON AUDITING 545 AUDITING FAIR VALUE MEASUREMENTS AND DISCLOSURES CONTENTS Paragraphs Introduction 1-9 Understanding the Entity’s Process for Determining Fair Value Measurements and Disclosures and Relevant Control Procedures, and Assessing Risk 10-16 Assessing the Appropriateness of Fair Value Measurements and Disclosures 17-28 Using the Work of an Expert 29-32 Testing the Entity’s Fair Value Measurements and Disclosures 33-55 Disclosures About Fair Values 56-60 Evaluating the Results of Audit Procedures 61-62 Management Representations 63-64 Communication with Those Charged with Governance 65 Effective Date 66 Acknowledgment 67-68 Appendix: Fair Value Measurements and Disclosures under GAAP in the Philippines
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(PSA 545) Philippine Standards on Auditing (PSAs) are to be applied in the audit of financial statements. PSAs are also to be applied, adapted as necessary, to the audit of other information and to related services. PSAs contain the basic principles and essential procedures (identified in bold type black lettering) together with related guidance in the form of explanatory and other material. The basic principles and essential procedures are to be interpreted in the context of the explanatory and other material that provide guidance for their application. To understand and apply the basic principles and essential procedures together with the related guidance, it is necessary to consider the whole text of the PSA including explanatory and other material contained in the PSA, not just that text which is black lettered. In exceptional circumstances, an auditor may judge it necessary to depart from a PSA in order to more effectively achieve the object of an audit. When such a situation arises, the auditor should be prepared to justify the departure. PSAs need only be applied to material matters. The PSA issued by the Auditing Standards Practices Council (Council) are based on International Standards on Auditing (ISAs) issued by the International Auditing Practices Committee of the International Federation of Accountants. The ISAs on which the PSAs are based are generally applicable to the public sector, including government business enterprises. However, the applicability of the equivalent PSAs on Philippine public sector entities has not been addressed by the Council. It is the understanding of the Council that this matter will be addressed by the Commisson on Audit itself in due course. Accordingly, the Public Sector perspective set out at the end of an ISA has not been adopted into the PSAs.
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(PSA 545) Auditing Fair Value Measurements And Disclosures Introduction 1. The purpose of this International Standard on Auditing (PSA) is to establish standards and provide guidance on auditing fair value measurements and disclosures contained in financial statements. In particular, this PSA addresses
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This note was uploaded on 02/26/2011 for the course ACCOUNTING 310 taught by Professor Cruz during the Spring '11 term at Xavier - Ateneo de Cagayan.

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PSA-545 - (PSA 545) Auditing Standards and Practices...

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