Auditing Complex Management Estimates - VIRTUAL

Overview

Accounting estimates are often some of the most difficult and subjective amounts included in U.S. GAAP financial statements. These estimates are pervasive and are often sensitive to relatively small changes in assumptions or circumstances, which can have a significant impact on the recorded (or not recorded) estimate in the financial statements. In this course, we will review the relevant auditing guidance related to auditing estimates, including the estimate for credit losses under ASC 326. We will focus on the three most common ways auditors can approach their audit of accounting estimates: waiting for the contingency to resolve itself, auditing the client's estimation process, and developing the auditor's point or range of estimate. Then we will review what has changed since SAS 143 became effective for 2023 audits.

Prerequisites

Experience in accounting and attestation

Objectives

• Recall key presentation and disclosure requirements of ASC 326
• Recall key approaches to auditing accounting estimates
• Identify key provisions under SAS 143
• Identify common models used to estimate credit losses and other estimates under U.S. GAAP

Highlights

• Common accounting estimates
• Accounting guidance related to loss and gain contingencies
• Audit guidance related to auditing accounting estimates
• Auditing expected credit losses under ASC 326
• Overview of the requirements of SAS 143
• Key changes to auditing estimates due to the issuance of ASC 326