In Evaluating the Reasonableness of an Estimate, the Auditor Would

question 59

Multiple Choice

In evaluating the reasonableness of an estimate, the auditor would not normally concentrate on which of the following factors and assumptions?

• A) Subjective judgments that introduce bias.
• B) Deviations from historical patterns.
• C) Amounts that are inconsistent with current economic trends.
• D) All of these are a focus of the auditor regarding reasonable estimates.

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Definitions:

Mammy

A stereotypical image of a black woman, depicted as devoted and submissive, serving her white employers.

Stereotype Threat

The risk of confirming negative stereotypes about one’s social group, which can impair performance and contribute to disparities.

Threatened Domain

An area or aspect of an individual's life or identity that feels at risk or under attack, causing stress or defensive reactions.

Positive Stereotypes

Generalizations about a group that are seen in a positive light, but can still have restrictive effects by limiting individual expression.