Course Details


Course Name: Understanding Auditing Estimates (CAS 540)
CPD Hours: 2
Type: Online/Video
Price: $120 $108


Description:
Auditing accounting estimates has consistently ranked among the most challenging areas of public practice. With the introduction of the revised Canadian Auditing Standard (CAS) 540, auditors face rigorous requirements designed to address the increasing complexity, subjectivity, and estimation uncertainty inherent in modern financial reporting.

"Understanding Auditing Estimates (CAS 540)" is a practical, compliance-focused CPD course designed specifically for Canadian practitioners. This course demystifies the revised standard and provides clear, actionable pathways to perform high-quality audits under both IFRS and ASPE frameworks.

Through eight structured topics, you will walk through the entire lifecycle of auditing an estimate—from initial risk assessment and internal control evaluations to choosing testing approaches, addressing management bias, and meeting CPAB (Canadian Public Accountability Board) documentation standards.

Equip yourself and your engagement teams with the tools, strategies, and templates necessary to satisfy practice inspectors, challenge management with professional skepticism, and issue audit opinions with absolute confidence.


Topics:
Topic 1: Introduction and The Core of CAS 540
1.1: Overview and Objectives of CAS 540 (Revised)
1.2: Identifying "What is an Estimate?" (ASPE vs. IFRS)
1.3: Inherent Risk Factors and Professional Skepticism
Topic 2: Risk Assessment Procedures and Internal Controls
2.1: Understanding Management’s Process, Models, and Data
2.2: Assessing the System of Internal Control
2.3: Performing the Retrospective Review
Topic 3: Identifying and Assessing the Risks of Material Misstatement (RMM)
3.1: Separating Inherent Risk and Control Risk Assessments
3.2: Defining Complex vs. Less Complex Estimates
3.3: Evaluating Estimation Uncertainty and Significant Risks
Topic 4: Risk Responses – Choosing Your Audit Approach
4.1: The Three Testing Approaches of CAS 540
4.2: Approach 1: Reviewing Subsequent Events
4.3: Selecting the Optimal Approach (Decision Matrix)
Topic 5: Deep Dive – Testing Management’s Estimate
5.1: Evaluating Methods, Models, and Key Assumptions
5.2: Testing the Quality and Integrity of Data
5.3: Leveraging Specialists and Experts
Topic 6: Deep Dive – Developing an Auditor’s Estimate or Range
6.1: Guidelines for Developing an Independent Point Estimate
6.2: Establishing and Narrowing a Reliable Range
6.3: Resolving Discrepancies and Adjustments
Topic 7: Evaluation, Bias and Concluding
7.1: The Mandatory "Stand-Back" Requirement
7.2: Identifying and Challenging Management Bias
7.3: Written Representations and Communicating with TCWG
Topic 8: Documentation Standards and CPAB Pitfalls
8.1: Critical CAS 540 Documentation Requirements
8.2: Common CPAB Inspection Findings and Pitfalls
8.3: Ultimate Estimates Checklist for File Sign-off






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