Which of the following is least likely to require significant auditor judgment about the dollar amount to be disclosed in the financial statement?
A) Contingent liability related to pending litigation.
B) Assumptions made in preparation of the estimate of income tax expense for the year.
C) The value of inventory.
D) Cash on hand at the end of the year.

Question

Quizplus · Accepted Answer

Cash on hand at the end of the year is typically easy to determine and does not require significant auditor judgment. Contingent liabilities, estimate of income tax expense, and inventory valuation all involve more complex judgment and estimation.

Which of the Following Is Least Likely to Require Significant