The International Auditing and Assurance Standards Board (IAASB) has recently issued ISA 540 (revised and redrafted) Auditing accounting estimates, including fair value accounting estimates, and related disclosures.

The new standard is designed to enhance the requirements for the audit of accounting estimates, including fair value accounting estimates.

It deals with the auditor’s attention to high risk areas, accounting judgment and possible bias, as well as assisting the auditor in forming appropriate conclusions about the reasonableness of estimates.

For further information download ISA 540 from the IAASB website.