Relevant Aspects Regarding the Audit of Accounting Estimates

Author:Aura GIURCĂNEANU, Clemente KISS, Ph.D.

JEL: M40, M42

DOI:

Keywords:professional judgement, accounting estimates, audit evidence, inquiries, financial auditor

Abstract:
As part of the audit of the financial statements, it is important to document considerations relating to the reasonableness of the accounting estimates, both individually and in the context of the financial statements as a whole. Because of the nature of accounting estimates, experienced auditors may reach different conclusions about their reasonableness and appropriateness. Therefore, it is important to sufficiently and appropriately document the basis for significant judgements and professional scepticism exercised when auditing accounting estimates. Ultimately, the determination of whether audit documentation is sufficient and appropriate is a matter of professional judgement for the auditor, and is dependent upon the risk assessment and particular facts and circumstances of the entity. \r\n

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