Page 301 - Auditing Standards
P. 301
As of December 15, 2017
2 For purposes of this section, management's assumptions include assumptions developed by management
under the guidance of the board of directors and assumptions developed by a specialist engaged or employed
by management.
3 See, for example, AS 2503, Auditing Derivative Instruments, Hedging Activities, and Investments in
Securities.
4 Statement of Financial Accounting Standard No. 157, Fair Value Measurements, states that a change in
valuation technique or its application is appropriate if the change results in a measurement that is equally or
more representative of fair value in the circumstances.
5 The auditor also should consider requirements of GAAP that may influence the selection of assumptions
(see FASB Concepts Statement No. 7).
6 See AS 2305, Substantive Analytical Procedures.
7 The auditor's consideration of a subsequent event or transaction, as contemplated in this paragraph, is a
substantive test and thus differs from the review of subsequent events performed pursuant to AS 2801,
Subsequent Events.
8 See also paragraph .31 of AS 2810, Evaluating Audit Results.
9 See Statement of Position 94-6, Disclosure of Certain Significant Risks and Uncertainties.
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