Document ID: chunk:federal_register_of_legislation:F2022C01152:reg:4:p61
Version: federal_register_of_legislation:F2022C01152
Segment Type: reg
Provision Reference: reg 4 (pt 61/63)
Character Range: 187700–191164

or changes in, accounting estimates and related disclosures.

(b)                Risks of material misstatement.

(c)                The relative materiality of the accounting estimates to the financial report as a whole;

(d)                Management's understanding (or lack thereof) regarding the nature and extent of, and the risks associated with, accounting estimates;

(e)                Whether management has applied appropriate specialised skills or knowledge or engaged appropriate experts.

(f)                 The auditor's views about differences between the auditor's point estimate or range and management's point estimate.

(g)                The auditor's views about the appropriateness of the selection of accounting policies related to accounting estimates and presentation of accounting estimates in the financial report.

(h)                Indicators of possible management bias.

(i)                 Whether there has been or ought to have been a change from the prior period in the methods for making the accounting estimates

(j)                 When there has been a change from the prior period in the methods for making the accounting estimate, why, as well as the outcome of accounting estimates in prior periods.

(k)                Whether management's methods for making the accounting estimates, including when management has used a model, are appropriate in the context of the measurement objectives, the nature, conditions and circumstances, and other requirements of the applicable financial reporting framework.

(l)                 The nature and consequences of significant assumptions used in accounting estimates and the degree of subjectivity involved in the development of the assumptions;

(m)             Whether significant assumptions are consistent with each other and with those used in other accounting estimates, or with assumptions used in other areas of the entity's business activities.

(n)                When relevant to the appropriateness of the significant assumptions or the appropriate application of the applicable financial reporting framework, whether management has the intent to carry out specific courses of action and has the ability to do so.

(o)                How management has considered alternative assumptions or outcomes and why it has rejected them, or how management has otherwise addressed estimation uncertainty in making the accounting estimate.

(p)                Whether the data and significant assumptions used by management in making the accounting estimates are appropriate in the context of the applicable financial reporting framework.

(q)                The relevance and reliability of information obtained from an external information source.

(r)                 Significant difficulties encountered when obtaining sufficient appropriate audit evidence relating to data obtained from an external information source or valuations performed by management or a management's expert.

(s)                Significant differences in judgements between the auditor and management or a management's expert regarding valuations.

(t)                 The potential effects on the entity's financial report of material risks and exposures required to be disclosed in the financial report, including the estimation uncertainty associated with accounting estimates.

(u)                The reasonableness of disclosures about estimation uncertainty in the financial report.

(v)