Guidance on auditing accounting estimates

September 3, 2019

The AICPA Auditing Standards Board (ASB) has issued a proposal intended to address the challenges that auditors face when auditing accounting estimates.

By providing risk assessment requirements and further audit procedures, the Statement on Auditing Standards (SAS), Auditing Accounting Estimates and Related Disclosures, will enable auditors to better focus on factors driving estimation uncertainty and potential management bias.

The hope is that the ASB’s proposal will help auditors employ professional skepticism, improving audit quality as a result. Comments on the new standard will be taken through Nov. 22.

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