Accounting estimates are an approximation of a monetary amount in the absence of a precise means of measurement. The risks of material misstatement for areas of estimation tend to be higher due to the dependence on future events and the intended actions of management. This module will discuss tips and techniques for gathering sufficient appropriate audit evidence to support conclusions related to accounting estimates.

Major Topics:

  • Identifying areas of estimation uncertainty, including fair value measurements.
  • Assessing risk of material misstatement related to estimates, and testing the estimation process.
  • The fair value measurement process, including non-readily marketable securities.
  • Applying audit procedures to common areas of estimation.
  • Evaluating the results of audit procedures for possible audit adjustment.


Learning Objectives
  • Discover and describe typical areas of estimation and related audit risks.
  • Recognize and explain how to link the assessed risk of material misstatement to a detailed audit plan.
  • Identify and discuss the importance of challenging management’s assumptions when auditing estimates.
  • Discover and describe fair value modeling techniques, including for non-readily marketable investments.
  • Explore and describe how to properly evaluate the sufficiency and appropriateness of audit evidence and resulting conclusions when there is accounting uncertainty.
Last updated/reviewed: August 5, 2023

Included In Certifications

This course is included in the following Certification Programs:

13 CoursesAudit Training Certification - Level 4 - Supervisor/Manager

  1. Audit Quality Control - Avoiding Peer Review Deficiencies
  2. Internal Control Deficiencies and Other Matters - Adding Value Through Required Auditor Communications
  3. Auditing Impairment of Long-Lived Assets, Including Goodwill - Identifying and Calculating Impairment Losses
  4. Maximizing Analytic Procedure Evidence - Adding Value Through Useful Financial Statement Analysis
  5. Accounting Estimates, Including Fair Value - Evaluating the Propriety of Areas with Uncertainty
  6. Special Audit Considerations - Comprehending Requirements of Group Audits, Compliance Audits, Using the Work of a Specialist or Others, and More!
  7. The Art of Discipline and Getting Things Done - Applying Better Time, Team, and Project Management Techniques
  8. Management Skills - Exhibiting Traits of a Balanced Leader-Manager
  9. Personality Styles - Adapting to Different Types of Personalities for Improved Relationships and Interactions
  10. Making Rain - Improving Success with Retaining Clients and Attracting Prospects
  11. General Ethics for Business Professionals
  12. Accounting Update - Hot Topics for Preparing Current Period Financial Statements
  13. Auditing & Attest Update - Hot Topics for Current Period Audits and Other Attest Services
Course Complexity: Intermediate

Prerequisite: Experience on basic audit engagements.
Designed For: Accountants who audit accounts, classes of transaction and disclosures with estimation uncertainty.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
  Learning Objectives for Accounting Estimates, Including Fair Value1:00
  Estimation Uncertainty6:36
  Financial Reporting Requirements and Risk Assessment Procedure6:02
  Understanding the Estimation Process and Relevant Internal Control5:07
  Further Audit Procedures13:38
  Challenging Data and Assumptions13:54
  Developing a Point Estimate or Range20:20
  Evaluating Results and Forming Conclusions7:49
  Other Matters4:21
  Case Study-Accounting Estimate Fraud11:30
  Accounting Estimates, Including Fair Value1:39:13
  Slides: Accounting Estimates, Including Fair Value - Evaluating the Propriety of Areas with UncertaintyPDF
  Accounting Estimates, Including Fair Value - Evaluating the Propriety of Areas with Uncertainty Glossary/ IndexPDF