Once the Final Outcome of a Transaction or Event Occurs

question 65

Multiple Choice

Once the final outcome of a transaction or event occurs _______.

• A)it is expected that there will be a difference between the outcome of the accounting estimate and the amount originally recognized or disclosed in the financial statements
• B)it is expected that there will be no difference between the outcome of the accounting estimate and the amount originally recognized or disclosed in the financial statements
• C)the amount should be adjusted to match the estimated balance
• D)the auditor should not concern themselves with investigating abnormally large variances

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Definitions:

Avoid Conflict

The practice of steering clear of disagreements and disputes in order to maintain harmony and reduce friction within a group or organization.

Open-Minded Discussion

A conversation or debate where participants are willing to consider and discuss a wide range of ideas and viewpoints.

Stress Outcomes

The results or consequences of experiencing stress, which may affect an individual's mental, physical, or emotional well-being.

Physiological Consequences

Refers to the physical effects or changes in the body resulting from certain actions, behaviors, or environmental exposures.