FRC Audit Quality Deep-Dive 2020/21: Part 2 - Areas of Judgement

Areas of judgement, such as estimates and assumptions, are inherently subjective. They are susceptible to management bias and highly sensitive to change. When evaluating management judgements, auditors should apply appropriate challenge, test assumptions and the consider the sensitivity of these assumptions.

The FRC raised multiple areas of judgement as key findings for all seven firms

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