What substantive audit procedures could the auditor use in testing the estimates?

Question

According to generally accepted auditing standards, the relevant aspects of a
control system over the preparation of accounting estimates include:
> Identifying where accounting estimates are required.
> Gathering relevant, sufficient, and reliable data for the estimates.
> Developing assumptions about the estimates.
> Preparation of estimates by qualified personnel.
> Adequate review and approval by appropriate levels of authority.
> Comparison of previous estimates with actual results.
> Consideration by management of whether the accounting estimates are
reasonable and consistent with the company's operational plans.
Required:

Answer 1

Substantive audit procedures include the following:
i. Apply knowledge of the business and the industry.
ii. Assess risk and materiality.
iii. Understand the policies and procedures over preparation of the estimate.
iv. Assess the underlying assumptions.
v. Verify the calculations.
vi. Compare to prior periods.
vii. Assess the consistency with other audit evidence.