AUD Estimates · Updated November 2026
How Do You Audit a Number Nobody Knows Exactly?
Audit estimates by testing how management built the number and whether the data and assumptions are reasonable.
Understand management's method
Identify the model, assumptions, data, review process, and controls used to build the estimate.
Test the process
The auditor can test data, assumptions, calculations, controls, and model application.
Independent estimate
In some situations the auditor can develop a point estimate or reasonable range for comparison.
Subsequent events
Events after the measurement date can sometimes provide relevant evidence about the estimate.
Management bias
Individually reasonable estimates can still form a pattern suggesting bias.
The takeaway
Uncertainty does not make an estimate unauditable. It changes how evidence is gathered and evaluated.
Related Summit guides
FAQ
Does estimation uncertainty mean the estimate is wrong?
No.
Can the auditor develop an independent range?
Yes.
Does management bias matter?
Yes.