Specific Areas of Audit Risks A14-12b

Some responses to the assessed risk of material misstatement, for accounting estimates.

  1. Test the estimate, including, methods, assumptions, and data used.
  2. Test operating effectiveness of internal controls, over accounting estimates.
  3. Development point estimate or range as benchmark.
  4. Consider using specialized  skills.
  5. Review events up the balance sheet date, for evidence about estimates.