Which of the Following Is True About an Auditor's Responsibility

question 372

Multiple Choice

Which of the following is true about an auditor's responsibility with respect to accounting estimates?

• A) The auditor is responsible for both preparing accounting estimates and evaluating their reasonableness.
• B) The auditor is responsible for preparing accounting estimates in accordance with generally accepted auditing standards.
• C) The auditor is responsible for evaluating the reasonableness of accounting estimates.
• D) The auditor has no responsibility with respect to accounting estimates.

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Definitions:

James Brian Quinn

An influential thinker in management theory, particularly known for his work on strategic outsourcing and the evolution of enterprise.

Large Organizations

Corporations, agencies, or groups that are extensive in size, typically comprising many people, resources, and complex structures.

Planned Method

A systematic, pre-determined approach or strategy designed to achieve specific goals or outcomes.

Companywide

Pertains to policies, practices, or actions affecting an entire organization.