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[The following paragraph was effective for audits of financial statements for periods beginning on or after January 1, 1989. It was amended, effective for audits of fiscal years beginning on or after December 15, 2010. See PCAOB Release No. 2010-004.

Return to the current version.]

.07

The auditor's objective when evaluating accounting estimates is to obtain sufficient competent evidential matter to provide reasonable assurance that—

  1. All accounting estimates that could be material to the financial statements have been developed.
  2. Those accounting estimates are reasonable in the circumstances.
  3. The accounting estimates are presented in conformity with applicable accounting principles fn 2 and are properly disclosed. fn 3