Risk that required special audit compliance consideration : the degree of subjectivity in the measurements of financial information..sir yeah point kya kehna chahta hey?

Questions › Category: SA-315 › Risk that required special audit compliance consideration : the degree of subjectivity in the measurements of financial information..sir yeah point kya kehna chahta hey?

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Ashish Patel asked 6 years ago

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Ravi Staff answered 6 years ago

Subjectivity means which changes from person to person. If company is having artistic value items, its valuation will be different for different people. Further suppose company doing impairment testing , we have to compute value in use , which will be different for different people. In such case judgments can go wrong and there is significant risk.