Core concepts
- 01SA 540 (Revised): audit of accounting estimates & disclosures.
- 02Range of acceptable outcomes vs management's point estimate.
- 03SA 550 — Related Parties: identify, understand business rationale, evaluate disclosure.
- 04SA 580 — Written Representations: complement other evidence; not substitute.
- 05SA 600 — Using Work of Other Auditor (group / branch).
Flowchart summary
Special Areas | SA 540 Estimates -- range, point estimate, model risk SA 550 Related Parties -- substance over form SA 580 Written Reps -- date close to audit report SA 600 Group Audit -- principal auditor responsibility
Exam-critical pointers
- ⭐SA 540 introduces inherent risk spectrum based on estimation uncertainty + complexity + judgment.
- ⭐Related party transactions disclosed under AS 18 / Ind AS 24.
- ⭐Written representations don't replace audit evidence — supplement only.
- ⭐Going concern (SA 570) — material uncertainty disclosure in EoM / Adverse opinion.
Make it click