AU 342.09 explains that the auditor should normally concentrate on the key factors and assumptions used by management including all of the following except those that are:
A) insignificant to the accounting estimate.
B) sensitive to variations.
C) subject to misstatement and bias.
D) deviations from historical patterns.
E) susceptible to misstatement and bias.

Question

Quizplus · Accepted Answer

AU 342.09 focuses on key factors and assumptions that are significant to the accounting estimate, sensitive to variations, subject to misstatement and bias, and deviations from historical patterns. It does not emphasize factors that are insignificant to the accounting estimate.

AU 34209 Explains That the Auditor Should Normally Concentrate on the the Key