The Auditor Should Have a Sound Basis,supported by Objective Evidence,regarding

question 80

Multiple Choice

The auditor should have a sound basis,supported by objective evidence,regarding accounting estimates and should not fall victim to an "all estimates are subjective" argument in order to waive which of the following?

• A)Contingent liability.
• B)Material misstatements.
• C)Unrecorded liability.
• D)Material adjustments.

---

Definitions:

Public Order

Laws, regulations, or practices aimed at preserving peace and preventing behaviors that disrupt society's tranquility and safety.

Economic

Relating to the economy, or the comprehensive system involving the production, distribution, and consumption of goods and services.

Selective Understanding

The phenomenon of interpreting information in a way that aligns with pre-existing beliefs or opinions, ignoring conflicting data.

Political Beliefs

Individual or collective beliefs and ideologies regarding political systems, policies, and leaders.