Probe Audit | 10.53 - Understanding accounting estimates

Published: 22/08/2025

The following describes the functionality and features included in Probe Audit Premium+.

10.53 - UNDERSTANDING ACCOUNTING ESTIMATES

Watch the video for detailed guidance on the feature above, then read the summary below for a concise overview.

Document 10.53 – Understanding of accounting estimates can be found in the Pre-engagement planning folder in the Caseware document manager.

This document is designed to be a questionnaire type document with space for a comment or further description.

The document needs to be activated by:

Indicating in 10.50 – Gathering information that there are amounts in the financial statements based on accounting estimates or fair value measurements; and
Selecting the tick box for accounting estimates in the relevant COTABD in 10.51 – Types and volumes of transactions.

This document is divided into different bookmarks in the document map to assist you in evaluating the engagement:

COLUMN	INPUT REQUIRED	OUTCOME
Risk assessment procedures
Type of procedures	No input required.	No impact on the engagement file.
Select	Select the risk assessment procedures performed by clicking on the tick box (i.e. inquiries, observations and/or inspections)	No impact on the engagement file.
Describe the source(s) from which information was obtained	Insert a short description of the sources of information from which the understanding was obtained or the procedures performed. When inquiries is selected, record the name and detail of the respondent and the date of the inquiry.	No impact on the engagement file.
Risk	Raise a risk or event, if necessary, relating to the responses reflected.	A risk or event will be recorded in the relevant document. The engagement file will then prompt the engagement team for appropriate responses to the risk or event recorded.
COTABDS
Consideration	No input required.	No impact on the engagement file.
Description	Document a response to the consideration.	No impact on the engagement file.
Risk	Raise a risk or event, if necessary, relating to the consideration or the responses reflected.	A risk or event will be recorded in the relevant document. The engagement file will then prompt the engagement team for appropriate responses to the risk or event recorded.

You conclude on this document by recording your considerations of estimates and raise risks and then signing off the document.

The content of this document is activated by:

Indicating that there are amounts in the financial statements based on accounting estimates or fair value measurements in 10.50 Gathering information; and
Selecting the COTABDs that are based on accounting estimates in 10.50G which will automatically make the selection in 10.51.

There are no other modifications to this document when the engagement type was selected as ‘Group Audit Single’ or ‘Group Audit Multiple’.