ISA 540 (Revised) — Auditing Accounting Estimates and Related Disclosures

ISA 540 (Revised) is an international pronouncement addressing the audit of accounting estimates and related disclosures, including estimation uncertainty and management bias. It addresses the auditor’s responsibilities for accounting estimates and related disclosures. The auditor considers the method, significant assumptions, data, estimation uncertainty and possible management bias, adapting the work to the assessed risks and circumstances.