Auditor’s point estimate or range
An auditor’s point estimate or range is an amount or interval developed to evaluate management’s accounting estimate when that approach is appropriate. It should be based on sufficient appropriate evidence and account for the requirements of the applicable reporting framework.
Worked example
The auditor develops an independent range for a provision using supported claim probabilities and compares it with management’s estimate.
Common mistake
A range is not a statistical confidence interval unless the methodology supports that interpretation.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |