Designing and performing further audit procedures to test management's process may be an appropriate approach when: our review of similar accounting estimates made in the prior period financial statements suggests that management's current process is appropriate the accounting estimate is based on a large population of items of a similar nature that are not individually significant it is not practical to obtain audit evidence from events occurring up to the date of the auditor's report or to develop an auditor's point estimate or range the accounting estimate is derived from the routine processing of data by the entity's accounting system all of the above