IAASB Issues New Auditing Standard on Accounting Estimates and Fair Values

International Auditing and Assurance Standards Board (IAASB) of International Federation of Accountants (IFAC) has released new requirements designed to enhance the rigor applied to auditing accounting estimates, including new fair value accounting estimates. The International Standard on
Auditing (ISA) 540 (Revised and Redrafted), Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures, requires the auditor to focus attention on areas of
higher risk, accounting judgment, and possible bias, thereby assisting the auditor to form appropriate conclusions about the reasonableness of estimates in the context of an entity’s financial reporting
framework.