PSA-540-Revised-and-Redrafted

PSA-540-Revised-and-Redrafted - Philippine Standard on...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Philippine Standard on Auditing 540 (Revised and Redrafted) AUDITING ACCOUNTING ESTIMATES, INCLUDING FAIR VALUE ACCOUNTING ESTIMATES, AND RELATED DISCLOSURES Conforming Amendments Philippine Standard on Auditing 240 (Redrafted) THE AUDITORS RESPONSIBILITIES RELATING TO FRAUD IN AN AUDIT OF FINANCIAL STATEMENTS Auditing and Assurance Standards Council PSA 540 (Revised and Redrafted) 2 PHILIPPINE STANDARD ON AUDITING 540 (REVISED AND REDRAFTED) AUDITING ACCOUNTING ESTIMATES, INCLUDING FAIR VALUE ACCOUNTING ESTIMATES, AND RELATED DISCLOSURES (Effective for audits of financial statements for periods beginning on or after December 15, 2009) CONTENTS Paragraph Introduction Scope of this PSA . ........................................................................................... 1-4 Effective Date . ................................................................................................. 5 Objective ........................................................................................................ 6 Definitions ...................................................................................................... 7 Requirements Risk Assessment Procedures and Related Activities . ..................................... 8-9 Identifying and Assessing the Risks of Material Misstatement . ..................... 10-11 Responses to the Assessed Risks of Material Misstatement . .......................... 12-14 Further Substantive Procedures to Respond to Significant Risks . .................. 15-17 Evaluating the Reasonableness of the Accounting Estimates, and Determining Misstatements . ................................................................ 18 Disclosures Related to Accounting Estimates . ................................................ 19-20 Indicators of Possible Management Bias . ....................................................... 21 Written Representations . ................................................................................. 22 Documentation . ............................................................................................... 23 Application and Other Explanatory Material Nature of Accounting Estimates . ................................................................... A1-A11 Risk Assessment Procedures and Related Activities . .................................... A12-A44 Identifying and Assessing the Risks of Material Misstatement . .................... A45-A51 Responses to the Assessed Risks of Material Misstatement . ......................... A52-A101 Further Substantive Procedures to Respond to Significant Risks . ................ A102-A115 Evaluating the Reasonableness of the Accounting Estimates, and Determining Misstatements . ............................................................ A116-A119 Disclosures Related to Accounting Estimates . ............................................ A120-A123 Indicators of Possible Management Bias . ................................................... A124-A125...
View Full Document

Page1 / 47

PSA-540-Revised-and-Redrafted - Philippine Standard on...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online