The PCAOB has adopted a new standard, Auditing Standard 2501, Auditing Accounting Estimates, Including Fair Value Measurements, and related amendments.

This new standard replaces the Board's existing standards on auditing accounting estimates, fair value measurements, and derivative instruments starting January 1, 2020.

The PCAOB objective is to strengthen and enhance requirements for auditing estimates, including fair value measurements. This rulemaking is a companion to the rulemaking on the auditor's use of the work of specialists.

Accounting estimates are becoming more prevalent and significant as financial reporting frameworks evolve and require greater use of estimates, including those based on fair value measurements. They are some of the areas of greatest risk in the audit, requiring additional audit attention and appropriate application of professional skepticism. Auditing accounting estimates have proven challenging for auditors.

This timely, two-hour morning CPE training event is designed for the CPA firm staff members who will be working on PCAOB regulated audits. The attendees will learn how this Auditing Standard should be reflected in the 2021 auditing workpapers.

Each attendee will receive 2 CPE Hours (YB). A certificate of completion will be provided.

Use this link to review more information on CCS events.

Contact the host of PCAOB Auditing Standard 2501: Auditing Accounting Estimates