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When Assessing the Risk of Material Misstatement,auditors Evaluate the Reasonableness

question 9

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When assessing the risk of material misstatement,auditors evaluate the reasonableness of an entity's accounting estimates.An auditor normally would be concerned about assumptions that are


Definitions:

Earn

To receive income in exchange for services rendered or as a return on investment.

Accumulate

The process of collecting or gathering an increasing quantity of a particular item or data points over time.

Post-Retirement Benefits

Benefits that an employee begins to receive after retiring from a company, including pensions, health insurance, and life insurance.

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