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Preparing for changes to ISA 540 and ISA UK 540

Auditors can access various types of practical support material to assist with ISA 540 implementation. Here’s a guide to some useful resources.

The international standard on auditing accounting estimates and related disclosures has been revised by the International Auditing and Assurance Standards Board (IAASB) and the UK standard setter the Financial Reporting Council (FRC). Both ISA 540 and ISA (UK) 540 are effective for audits of financial reporting periods beginning on or after 15 December 2019, so during 2021 (for December 2020 year ends onwards), there have been some significant changes and challenges for audit firms to grapple with.

Fortunately, there are plenty of helpful resources available. First-time implementation support from the IAASB, for example, includes: