M/s FG & Co., Chartered Accountants, have been appointed as statutory auditors of Z Ltd. for the F.Y.2024-25. During the course of audit, while…

Matters that need to be evaluated with respect to estimation uncertainty as per SA 540: As per SA 540, “Auditing Accounting Estimates, Including Fair Value Accounting Estimates & Related Disclosures”, matters that need to be evaluated by the auditor CA G specifically with respect to estimation uncertainty, for accounting estimates that give rise to significant risks, in addition to other substantive procedures performed to meet the requirements of SA 330, are as under: How management has: (i) Considered alternative assumptions or outcomes, (ii) Why it has rejected them, (iii) How management has otherwise addressed estimation uncertainty in making the accounting estimate. Whether the significant assumptions used by management are reasonable. Where relevant to the reasonableness of the significant assumptions used by management or the appropriate application of the applicable financial reporting framework, management's intent to carry out specific courses of action and its ability to do so.