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Accounting estimates are based on subjective factors. Consequently, controls over estimates are often more difficult to establish than controls over factual information, and the potential for bias in estimates may be greater. Although professional standards provide guidance about auditing some specific accounting estimates, no general guidance concerning the audit of accounting estimates has been established. This proposed Statement is intended to provide that guidance.
Financial statements -- United States; Accounting -- Estimates
Accounting | Taxation
American Institute of Certified Public Accountants. Auditing Standards Board, "Proposed statement on auditing standards : auditing accounting estimates ;Auditing accounting estimates" (1987). Statements of Position. 497.