When Evaluating Accounting Estimates, the Auditor Would Not Concentrate on Which

question 81

Multiple Choice

When evaluating accounting estimates, the auditor would not concentrate on which of the following key factors and assumptions?

• A) Those that are within budgetary expectations.
• B) Those that are subjective and susceptible to misstatement and bias.
• C) Those that are inconsistent with current economic trends.
• D) Those that are sensitive to variations.

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Definitions:

Spread Out

Describes data that is dispersed widely, showing a large variation among its values, often seen in distributions with high variance.

Inclusive Range

The difference between the highest and lowest values in a data set, considering all values within the set, including the extremes.

Exclusive Range

Refers to a range in statistics that does not include the specified upper and lower bounds in the set of possible values.

Unbiased Standard Deviation

A measure of the dispersion or variability of a data set that is corrected for bias, accurately reflecting the spread of the data.