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Practitioner's implementation tool: Revised CAS 540, auditing estimates

Looking for specifics about implementing revised CAS 540? Learn the what, why and how of auditing accounting estimates and related disclosures.

This tool provides you with an understanding of the requirements of CAS 540, Auditing Accounting Estimates and Related Disclosures, including the what, why and how of specific steps as illustrated in the International Auditing and Assurance Standards Board (IAASB) ISA 540 (Revised) Flowcharts.

This tool includes:

  • IAASB flowcharts which provide an overview of the flow of the requirements in ISA 540
  • a table of 10 steps which summarize key aspects of what is required by CAS 540 and other considerations related to "what" (requirements), "why" (reason), and "how" (practical considerations)
  • key changes from the previous version of CAS 540
  • guidance on how CAS 540 is scalable
  • links to non-authoritative material prepared by the IAASB and IFAC on ISA 540 (Revised)

Note: This tool has been updated to reflect changes as a result of revised CAS 315, Identifying and Assessing the Risk of Material Misstatement. Revised CAS 315 is effective for audits of financial statements for periods beginning on or after December 15, 2021.