We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners. Read More

Log in

Log in

M23010 - Auditing Accounting Estimates (Online)

  • 24 Mar 2023
  • 09:15 - 12:30
  • Online Webinar


Registration Time: 09:00
Sessions Time: 09:15- 12:30  including a 15-minute break
Speaker: Mr Mario P Galea
Venue: Online Webinar
Participation Fees (The Institute is now accepting payments via Paypal)
MIA Members: €40
Non-MIA Members: €75.00
Retired Members: €20.00
Students: €30.00

Financial statements are meant to give a true and fair view of the financial performance for a period of time and the financial position at the period ended on that date. The majority of balances and transactions making up the financial statements are supported by documentation. However, some items are not so supported because they are estimates.
These estimates are pivotal to the truth and fairness of the financial statements because they can overturn the message that the supported assertions purport to provide. Accounting estimates may be a tool in the hands of persons with malintent to deliver the message they want rather than an objective view about the entity.
Auditors are concerned with the audit risk of issuing the wrong opinion on the financial statements. During their work they are faced with various levels of comfort or lack of it. It’s one thing auditing routine procedures which produce documented numbers flowing into the financial statements and it’s another thing auditing estimations which are placed in, rather than flow into, the financial statements side by side with the data supported by a clearly laid out audit trail.
When it comes to the audit of accounting estimates the inherent audit risk shoots through the roof and with no or limited concrete controls to mitigate that risk, the auditor is constrained to apply extensive procedures to bring down the detection risk and therefore balance and rationalise the audit risk of misrepresentation.
During this session we will be looking at the nature, presence and incidence of accounting estimates, their impact of financial statements and the tools at the disposal of the auditor to detect them, obtain reasonable assurance about their truthfulness, justification, and fair representation as well as the nature of work and procedures that the auditor will have to engage in to minimise the risk of being drawn into being an accomplice in misrepresentation.

Topics on the agenda

  • ISA 540, estimation uncertainties
  • complex estimations
  • setting assumptions
  • supporting data
  • judgmental decision
  • nature timing and extent of audit procedures
  • risks of material misstatements
  • implementation tools for auditors
  • ISA 540 requirements flow
  • specific procedures under ISA 540 and other ISAs and the auditor’s professional judgement


This session is important for members in their responsibility to lend credibility to financial statements audited or produced by them, and to non-members as part of the campaign of the accounting profession to make business owners and users of financial statements aware of the workings of the profession.

Target Audience

Auditors, accountants, accounting staff, business leaders who are responsible for determining accounting estimates in their financial reporting, and students.

    Speaker's Profile

    Mario P Galea is a  certified public accountant holding a warrant to practice both as an accountant and as an auditor. Currently practising as a business advisor providing governance oversight and advisory services to businesses and corporations. Serves as an independent non-executive director on the boards and audit committees of various listed companies in the financial and commercial sectors. Mentor and advisor to family businesses. Founder, managing partner and chairman of accountancy and audit firm EY in Malta until retirement in 2012. Specialised in auditing and assurance which he has practiced for 35 years in Malta and abroad. Lectured in auditing, assurance and professional and business ethics and led several training courses. Speaker at various business and professional conferences in Malta and abroad. Speaker and producer of various webinars related to auditing, corporate governance and ethics. Assisted businesses in several areas particularly relating to governance, accounting and systems of control. Served as President of the Malta Institute of Accountants and for many years formed part of the Accountancy Board which is the accountancy profession regulator in Malta. Served on various professional committees in Malta and abroad such as the council of the Federation des Experts Comptables (FEE) in Brussels (now Accountancy Europe). Member of the Ethics committee of the Malta Institute of Accountants in Malta.


    3 Hours Core


    Terms and conditions  apply


    By Registering and/or Booking for this event, you agree that MIA will collect your information, who will be using it as per the MIA Privacy Policy for CPE Events. Please read the MIA’s Privacy Notice for CPE Events in its entirety which can be found at this link. By accepting to participate in this event you accept that MIA shall process personal data in accordance with this Privacy Notice.
    If registration is being affected by a company or other corporate entity on behalf of an attendee or the registering company or other corporate entity supplies to the MIA personal data of third parties, such as of employees, affiliates, management companies or service providers, the registering company or other corporate entity shall be solely responsible for making sure that the provision of such data to the MIA fully complies with applicable laws and the relevant person in regard to whom the data relates has been provided with the necessary information at law regarding the MIA’s processing of his personal data.
    Any information notices, consents or other applicable requirements that may be required to be fulfilled for the provision of third party data to the MIA shall be borne solely by the registering company or other corporate entity. The registering company or other corporate entity hereby fully indemnifies the MIA and shall render the MIA completely harmless against all costs, damages or liability of whatsoever nature resulting from any claims or litigation (instituted or threatened) by any third party against the MIA as a result of the provision of any third party personal data to the MIA by the registering company or other corporate entity.
    The Malta Institute of Accountants may take photos during this event. These images will be used by the Institute to share news about the event in newsletters, the Annual Report, The Accountant journal and printed publicity. Photos can also be published on MIA’s Facebook, Linkedln and Twitter. Such images may be used to publicise future events of the same nature and for reporting purposes.


    Contact Us

    Suite 4, Level 1, Tower Business Centre, Tower Street, Swatar, BKR 4013, Malta 

    E-mail: info@miamalta.org

    Tel. +356 2258 1900

    © MALTA INSTITUTE OF ACCOUNTANTS, 2023                                                                                         Privacy Notice