AU 34209 Explains That the Auditor Should Normally Concentrate on the the Key

question 40

Multiple Choice

AU 342.09 explains that the auditor should normally concentrate on the key factors and assumptions used by management including all of the following except those that are:

• A) insignificant to the accounting estimate.
• B) sensitive to variations.
• C) subject to misstatement and bias.
• D) deviations from historical patterns.
• E) susceptible to misstatement and bias.

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Definitions:

Prenuptial Agreements

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Financial Arrangements

Agreements or plans made to handle financial transactions, responsibilities, or investments.

Couple's

Pertaining to a pair of individuals who are in a romantic or committed relationship with each other.

Fair Fighting

A set of guidelines designed to help individuals resolve conflicts in a healthy and constructive manner, without harm.