Auditing Complex Management Estimates

Overview

You could pay $0 for this course!

Accounting estimates are often some of the most difficult and subjective amounts included in U.S. GAAP financial statements. These estimates are pervasive and are often sensitive to relatively small changes in assumptions or circumstances, which can have a significant impact on the recorded (or not recorded) estimate in the financial statements. In this course, we will review the relevant auditing guidance related to auditing estimates, including the estimate for credit losses under ASC 326. We will focus on the three most common ways auditors can approach their audit of accounting estimates: waiting for the contingency to resolve itself, auditing the client's estimation process, and developing the auditor's point or range of estimate. Then we will review what has changed since SAS 143 became effective for 2023 audits.

This course qualifies for reimbursement through the state’s Workforce Training Express Fund. Firms/companies with fewer than 50 staff can be reimbursed up to 100% of the cost of training and firms/companies with 50-100 employees can be reimbursed up to 50% of the cost of training. You must register for the course and apply for reimbursement through the Workforce Training Express Fund website a minimum of three weeks prior to the start of the course. The course code for this program is C-12953. To learn more, click here or contact Julia Ekelund at jekelund@masscpas.org.

Highlights

Common accounting estimates Accounting guidance related to loss and gain contingencies Audit guidance related to auditing accounting estimates Auditing expected credit losses under ASC 326 Overview of the requirements of SAS 143 Key changes to auditing estimates due to the issuance of ASC 326

Prerequisites

Experience in accounting and attestation

Designed For

Experienced auditors and auditors auditing CECL estimates under ASC 326 for the first time

Objectives

Recall key presentation and disclosure requirements of ASC 326 Recall key approaches to auditing accounting estimates Identify key provisions under SAS 143 Identify common models used to estimate credit losses and other estimates under U.S. GAAP

Preparation

None