In Evaluating the Reasonableness of an Accounting Estimate, an Auditor

question 745

Multiple Choice

In evaluating the reasonableness of an accounting estimate, an auditor most likely would concentrate on key factors and assumptions that are:

• A) Consistent with prior periods.
• B) Similar to industry guidelines.
• C) Objective and not susceptible to bias.
• D) Deviations from historical patterns.

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Definitions:

Attitudes

A settled way of thinking or feeling about someone or something, which is often reflected in a person’s behavior.

Behaviour

The actions or reactions of an individual, group, or system in response to external or internal stimuli.

Benchmarking

The process of comparing one's business processes and performance metrics to industry bests or best practices from other companies.

Employee Retention

Strategies and practices aimed at keeping employees satisfied and engaged to reduce turnover rates within an organization.