The challenge for auditors of implementing ISA 540
Effectively implementing the revised ISA 540 requires careful thinking, planning, training, coaching and guidance explains John Selwood.
It will be no surprise to regular readers of Audit & Beyond that there is a revised ISA 540 Auditing Accounting Estimates and Related Disclosures that applies imminently – namely periods commencing on or after 15 December 2019. You should already know about the spectrum of risk, the separate inherent and control risk assessment, the new focus on contradictory evidence and scepticism, and so on (see box, ICAEW resources).
What I want to address is how challenging the implementation of this revised ISA could be.