On 24 January 2020, The Federation of Accounting Professions (“TFAC”) released the exposure draft (“ED”) of Thai Standard on Auditing (“TSA”) 540 (revised) for public hearing and comments.
Keywords: Mazars, Thailand, Accounting, TFAC, ED, TSA, IAASB, TFRS
19 March 2020
This standard requires the auditor to evaluate, based on the audit procedures performed and the audit evidence obtained, whether the accounting estimates and related disclosures are reasonable in the context of the applicable financial reporting framework, or are misstated.
The purpose of issuing the ED of TSA 540 is to develop this standard to comply with the ED of International Standard of Auditing 540 that was launched by the International Auditing and Assurance Standards Board (IAASB). The IAASB and TFAC have sought to make the ED of ISA 540/TSA 540 (revised) scalable, and the revised standard will be used for all accounting estimates in the context of the reporting framework for publicly accountable entities, including the following standards:
In addition, the name of this standard has been changed from ‘Auditing Accounting Estimates, including Fair Value Accounting Estimates, and Related Disclosures’ to ‘Auditing Accounting Estimates and Related Disclosures’.
This standard will become effective in Thailand for auditing the financial statements of publicly accountable entities for periods beginning on or after 15 December 2020.
For more information about the ED of TSA 540 (revised), please visit FAP's website, the FAP's newsletter, and the IAAB's newsletter.