Auditors Are Responsible for Making Reasonable Accounting Estimates on Behalf

question 15

True/False

Auditors are responsible for making reasonable accounting estimates on behalf of management.

---

Definitions:

Extraordinary Repair

Major repairs extending the useful life of an asset far beyond the normal maintenance.

Betterment

The act of improving or increasing the value of an asset or property through enhancements or upgrades.

Capital Expenditure

Financial resources deployed by a business to buy or enhance tangible assets like real estate, factories, or machinery.

Asset Life

The expected duration over which an asset is considered usable and can contribute to a company’s operations.