In Order to Evaluate Management's Estimation Process, _______

question 94

Multiple Choice

In order to evaluate management's estimation process, _______.

• A)auditors use the knowledge gained about the industry and the applicable financial reporting framework during risk assessment
• B)auditors use the knowledge gained about other industries and the applicable financial reporting framework during risk assessment
• C)auditors compare management estimates with other management estimates at other companies
• D)the auditors ask the internal audit function to review and come to a conclusion which can be included in the audit report

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Definitions:

Psychoanalytic Theories

A set of theories originated by Sigmund Freud that emphasize the influence of the unconscious mind on behavior.

Early-Childhood Experiences

Events, interactions, and a range of stimuli in the first few years of life that significantly influence an individual's developmental trajectory and personality formation.

Cognitive Theorist

A scholar or researcher who studies the mental processes involved in perception, memory, judgment, and decision making.

Piaget

refers to Jean Piaget, a Swiss psychologist known for his pioneering work in developmental psychology and his theory of cognitive development in children.