Post-implementation review of ISA (NZ) 540, Auditing Accounting Estimates and Related Disclosures

Have your say on audits of accounting estimates and related disclosures We are seeking views from auditors, preparers, directors, regulators, academics and users of financial statements on how ISA (NZ) 540, Auditing Accounting Estimates and Related Disclosures (ISA (NZ) 540) is working in practice since it was revised in 2018.

Your input will inform our response to the International Auditing and Assurance Standards Board's (IAASB) post-implementation review.  

Share your views with us by completing a download of the IAASB post-implementation review survey applicable for your stakeholder group and emailing it to assurance@xrb.govt.nz. Please provide your comments to the XRB by Wednesday 13 May 2026.

Objectives of revising ISA (NZ) 540

Accounting estimates continue to evolve due to a more complex business environment.

The revised standard established more robust requirements and guidance to foster audit quality by driving auditors to perform  appropriate procedures in relation to accounting estimates and related disclosures and enhancing the exercise of professional scepticism.

Key questions we seek your views on

We seek your views on three principal areas:

• Overall views of ISA (NZ) 540, including related non-authoritative guidance and tools issued to support implementation
• Perceived benefits resulting from implementation of the revised standard; and
• Any potential issues, challenges or impacts experienced or observed.