Recent revisions to ISA (Ireland) 540, Auditing Accounting Estimates and Related Disclosures and ISA (Ireland) 570, Going Concern, will have significant impacts on the audit process for the audits of financial statements with a 31st December 2020 year end. Details of the revised standards can be found here.
Revisions to ISA 540 requires the auditor to perform additional risk assessment procedures over accounting estimates and to apply a more robust and challenging approach to these estimates.
Similarly, revised ISA 570 requires a more robust questioning approach to the matter of going concern, made all the more challenging in the midst of the COVID-19 pandemic and its impact on business. Details of the impact of the revisions to the audit report can be found here.
Please visit the CPA Audit Resource for updates and guidance for the audit season 2021.
The CPA Clarified Audit Procedures programme has been updated to reflect these changes and is available to purchase here.