Which of the Following Would Not Be a Typical Feature

question 38

Multiple Choice

Which of the following would not be a typical feature of management's control over the production of estimates?

• A)Accumulation of relevant, sufficient, and reliable data
• B)Preparation of estimates by qualified personnel
• C)Review by the independent auditor
• D)Consideration by management of whether particular accounting estimates are consistent with the company's operational plans

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Definitions:

Personal Defense

A defense that can be used to avoid payment to an ordinary holder of a negotiable instrument but not a holder in due course (HDC) or a holder with the rights of an HDC. Personal defenses are also called limited defenses.

HDC

Stands for Holder in Due Course, referring to a party that has acquired a negotiable instrument for value, in good faith, and without notice of any defects.

Primarily Liable

The entity or individual who holds the main responsibility for fulfilling an obligation or compensating for a loss.

Indorses

Acts of signing one's name on the back of a negotiable instrument, thereby transferring rights associated with the instrument to another party.