IAASB Launches Post-Implementation Review of ISA 540 (Revised)

Posted 11 March 2026 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The International Auditing and Assurance Standards Board (IAASB) has launched a public consultation survey to evaluate the effectiveness of International Standard on Auditing (ISA) 540 (Revised), Auditing Accounting Estimates and Related Disclosures.

In terms of the IAASB’s standard-setting cycle, the post-implementation review (PIR) seeks to assess how ISA 540 (Revised) has performed since it became effective for audits of financial statements for periods beginning on or after 15 December 2019. The standard was designed to establish more robust requirements and detailed guidance to drive auditors toward performing appropriate procedures regarding accounting estimates and their related disclosures.

The objective of the survey is to gather stakeholder feedback on the following areas:

  • Whether the standard has achieved its intended objectives in improving audit quality.
  • The specific benefits observed by auditors, preparers, and users of financial statements.
  • Practical challenges or implementation issues experienced since the standard became effective.
  • Whether further actions, such as additional guidance or amendments, are required from the IAASB.

The feedback gathered will inform the IAASB’s future work plan and determine if the standard requires further refinement to address emerging complexities in accounting estimates. The survey is open for public response until 15 June 2026.

Stakeholders, including auditors, independent reviewers, and accountants, can access the survey via the following link: ISA 540 (Revised) Post-Implementation Survey.

What this means for you, your business, or your clients

  • For yourself: No direct individual obligations; impact is channelled through firm-level compliance and the requirement to maintain professional competence regarding the application of ISA 540 (Revised).
  • For your business: Audit firms should review their internal methodologies for auditing accounting estimates to identify recurring challenges and provide formal feedback to the IAASB before the 15 June 2026 deadline.
  • For your clients: Clients with significant accounting estimates, such as fair value measurements or complex impairments, should expect continued rigorous audit procedures and detailed disclosure requirements as auditors adhere to the enhanced standards.

Originally published at https://accountingacademy.co.za/news/read/iaasb-post-implementation-review-survey-of-isa-540-revised-on-accounting-estimates

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