Top takeaways: FRC Audit Quality Inspection Results 2021/21 - Areas of Judgement
Audit Quality Deep Dive: 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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To find out more about the 2020/21 FRC audit quality inspections, subscribe to our mailing list. We will take a deep-dive into the common key findings and the actions firms can take to improve audit quality in the most challenging areas of the audit process.