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:

Consequential Damages

Special damages that compensate for a loss that is not direct or immediate (for example, lost profits). The special damages must have been reasonably foreseeable at the time the breach or injury occurred in order for the plaintiff to collect them.

Liability

A legal responsibility or obligation, particularly in the context of debts or torts.

Liquidated Damages Provision

A contractual clause that specifies a predetermined amount of money that must be paid as damages in the event of a contract breach by one of the parties.

Future Default

The possibility or likelihood of failing to make future payments on debt obligations.