It Is the Auditor's Job to Review the Client's Estimate

question 70

Multiple Choice

It is the auditor's job to review the client's estimate to evaluate whether it has been determined in accordance with the applicable financial reporting framework.To do this,the auditor considers whether the allowance for doubtful accounts is properly valued based on

• A)the accounts written off during the prior year
• B)the accounts receivable balance at the end of the current year
• C)past economic conditions
• D)the economic status of current customers
• E)the net receivable balance that should represent the amount of cash the company expects to collect in the current year
• F)both A and C
• G)both B and D

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Definitions:

Excitement

A state of aroused enthusiasm, interest, or the emotional stimulation towards an activity or event.

Orgasm

The climax of sexual stimulation, characterized by intense pleasure and release of tension.

Self-Actualization

The motivation to develop one’s full potential as a human being—the highest and most elusive of Maslow’s proposed needs.

Esteem

A social psychological construct representing an individual’s overall subjective emotional evaluation of their own worth.