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An Auditor Must Use Professional Judgment and Skepticism When Considering

question 17

True/False

An auditor must use professional judgment and skepticism when considering the subjective nature of some of the evidence that might be gathered and evaluated by the audit team.


Definitions:

Sales Forecast

An estimate of the expected sales of a product or service over a specific period, based on market research and historical sales data.

Owners' Equity

The total value that the owners or shareholders have invested in a company minus any liabilities the company has.

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