The Client Makes Estimates Relative to Recorded Amounts in the Financial

question 115

Multiple Choice

The client makes estimates relative to recorded amounts in the financial statements.In determining the reasonableness of these estimates the auditor should consider which of the following?

• A)Historical trends and information.
• B)Results of reconciliation procedures.
• C)That there is an adequate cushion.
• D)That management hired independent experts to quantify all estimates .

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Definitions:

Form Teams

The process of creating groups of individuals to work together towards a common goal or project.

Trade Offs

The concept of giving up one benefit or advantage in order to gain another considered more desirable.

Group Diversity

The presence of a wide range of variation in qualities among members of a group, such as age, gender, ethnic background, and socio-economic status.

Transactive Memory

A shared system for encoding, storing, and retrieving knowledge within close relationships or groups.