ISA 540 (Revised) Implementation: Illustrative Examples for Auditing Simple and Complex Accounting Estimates

The examples are designed to illustrate how an auditor could address certain requirements of ISA 540 (Revised).

The examples have been developed to assist the auditor in understanding how ISA 540 (Revised) may be applied to:

1) Simple Accounting Estimate – Provision on Inventory Impairment

2) Complex Accounting Estimate – Provision on Property, Plant and Equipment Impairment