Document ID: chunk:federal_register_of_legislation:F2019L00016:reg:21:p2
Version: federal_register_of_legislation:F2019L00016
Segment Type: reg
Provision Reference: reg 21 (pt 2/4)
Character Range: 42130–45174

of securities for which there is no observable market. If the individual or organisation applies that expertise in making an estimate which the entity uses in preparing its financial report, the individual or organisation is a management's expert and paragraph 8 applies. If, on the other hand, that individual or organisation merely provides price data regarding private transactions not otherwise available to the entity which the entity uses in its own estimation methods, such information, if used as audit evidence, is subject to paragraph 7 of this Auditing Standard, but is being information from an external information source and not the use of a management's expert by the entity.

48.               Existing footnote 16 to paragraph A45 of this Auditing Standard is amended to read as follows:

See ASA 620 Using the Work of an Auditor's Expert, paragraph 7.

49.               Existing paragraph A49 of this Auditing Standard is amended to read as follows:

Considerations when evaluating the appropriateness of the management's expert's work as audit evidence for the relevant assertion may include:

           * The relevance and reasonableness of that expert's findings or conclusions, their consistency with other audit evidence, and whether they have been appropriately reflected in the financial report;

           * If that expert's work involves use of significant assumptions and methods, the relevance and reasonableness of those assumptions and methods; and

           * If that expert's work involves significant use of source data, the relevance, completeness, and accuracy of that source data.; and

           * If that expert's work involves the use of information from an external information source, the relevance and reliability of that information.

Amendments to ASA 505

50.               Existing footnote 4 in paragraph 2 is amended to read as follows:

See ASA 500, paragraph A5 A9.

51.               Existing footnote 5 in paragraph 2 is amended to read as follows:

See ASA 500, paragraph A31 A35.

52.               Existing footnote 11 in paragraph 3 is amended to read as follows:

See ASA 500, paragraphs A8‑A9 A12‑A13.

Amendments to ASA 520

53.               Existing footnote 4 in paragraph A12 is amended to read as follows:

See ASA 500 Audit Evidence, paragraph A31A35.

Amendments to ASA 580

Amendments to ASA 580 Appendix 1

54.               The fifth point is amended to read as follows:

           * ASA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures – paragraph 2237

Amendments to ASA 580 Appendix 2

55.               The second point following the heading Financial Report of the Illustrative Representation Letter is amended to read as follows:

           * Significant The methods, the data, and the significant assumptions used by us in making accounting estimates, including those measured at fair value, and their related disclosures are appropriate to achieve recognition, measurement or disclosure that is reasonable