Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p38
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 128197–134517

sample size sufficient to reduce sampling risk to an appropriately low level; and

         3.                 Select the sample, perform procedures on the items selected, and evaluate the results.

Estimates and Forward–Looking Information

Limited Assurance                                                                                                                                                                                                                                                    Reasonable Assurance
    146L.  In responding to assessed risks of material misstatement relating to disclosures involving estimates or forward-looking information the practitioner shall: (Ref: Para. A450–A452, A454–A455L)                                                                146R. In responding to assessed risks of material misstatement relating to disclosures involving estimates or forward-looking information, the practitioner shall: (Ref: Para. A450–A452, A454)

       1.       Evaluate whether:                                                                                                                                                                                                                                           1.       Evaluate whether management has appropriately applied the requirements of the applicable criteria relevant to estimates or forward-looking information; and (Ref: Para. A453R)

              1.        Management has appropriately applied the requirements of the applicable criteria relevant to estimates or forward-looking information;                                                                                                              1.       Undertake one or more of the following:

              2.      The methods for developing estimates or forward-looking information are appropriate and have been applied consistently; and                                                                                                                                  1.        Test how management developed the estimate or forward-looking information and the related disclosure(s), and the information on which the estimate or forward-looking information is based. In doing so, the practitioner shall evaluate whether:

              3.    Changes, if any, in reported estimates or forward-looking information, or changes from the prior period in the method used for developing estimates or forward-looking information, are appropriate in the circumstances; and (Ref: Para. A459)                       1.          The method has been appropriately selected and applied, and any changes from prior periods are appropriate; (Ref: Para. A456R, A459)

       1.       Consider whether other procedures are necessary in the circumstances.                                                                                                                                                                                                     2.          The assumptions used, including any changes from prior periods, are appropriate; and (Ref: Para. A457R, A459)

                                                                                                                                                                                                                                                                                          3.          The data, including any changes from prior periods, are appropriate; (Ref: Para. A458R, A459)

                                                                                                                                                                                                                                                                                   2.      Develop a point estimate or a range to evaluate management's estimate. For this purpose, the practitioner shall: (Ref: Para. A460R–A462R)

                                                                                                                                                                                                                                                                                          1.          Evaluate whether the methods, assumptions or data used are appropriate in the context of the criteria; and

                                                                                                                                                                                                                                                                                          2.          When the practitioner develops a range:

                                                                                                                                                                                                                                                                                   i.      Determine that the range includes only amounts that are supported by sufficient evidence and have been evaluated by the practitioner to be reasonable; and

                                                                                                                                                                                                                                                                                   ii.    Design and perform further procedures to obtain sufficient appropriate evidence regarding the assessed risk of material misstatement relating to the disclosures in the sustainability information that describe the uncertainty; or

                                                                                                                                                                                                                                                                               1.    Obtain evidence from events occurring up to the date of the practitioner's report.

Revising the Risk Assessment in a Reasonable Assurance Engagement

147R. If the practitioner becomes aware of a matter or obtains new information that is inconsistent with the evidence on which the practitioner originally based the identification and assessment of the risks of material misstatement at the assertion level for the disclosures,