Professional Documents
Culture Documents
Considering Accounting
Estimates, Related Parties,
Litigation and Claims,
Segment Information, and
Going Concern
(AT.2514)
Leomar R. Cabarles
Outline
Prepare Evidence of
no material
misstatement
Accounting Estimates: Reasonableness
• Focus on assumptions:
Significant
Sensitive to variation
Subjective
Susceptible to bias
Audit Procedures
1. Understand process
2. Any:
a. Review the process
b. Develop own estimate,
including expert’s work
c. Review subsequent events
Related Parties
Related Parties: Responsibility
Disclose Evidence of
no material
misstatement
Indication of Related Parties
• Inquiry of management
• Obtain database
Disclose Evidence of
no material
misstatement
Audit Procedures
• Understand management’s
methods
Assess Evidence of
appropriateness no material
misstatement
Separate
GC EOM
-now do the DIY drill-
DIY Drill Answers
1. D
2. B
3. D
4. C
5. C
DIY Drill Answers
6. A
7. B
8. B
9. C
10. B
DIY Drill Answers
11. C
12. B
end of AT.2514