When Reviewing and Testing the Process Used by Management in Determining

question 38

Multiple Choice

When reviewing and testing the process used by management in determining the allowance for bad debts, which of the following would not be involved?

• A) reviewing projected allowances for future periods.
• B) ascertaining management's procedures for determining the estimate and considering their reliability.
• C) ensuring that the procedures have been properly followed.
• D) identifying the assumptions underlying the estimate and considering their reasonableness.

---

Definitions:

Electronic Data

Information that is stored in a digital format and can be retrieved via electronic devices.

Chain of Custody

The chronological documentation or paper trail that records the sequence of custody, control, transfer, analysis, and disposition of physical or electronic evidence.

Chain of Custody

A legal concept that refers to the chronological documentation or paper trail showing the seizure, custody, control, transfer, analysis, and disposition of physical or electronic evidence.

Presented in Court

The act of formally introducing evidence, documents, or arguments before a judge or jury during a legal proceeding.