Because of conservatism considerations,auditors should allow a client to overestimate its reserve for restructuring.

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Auditors should not allow a client to overestimate its reserve for restructuring, even if it is a conservative approach, as it could result in misrepresentation of financial statements and could potentially lead to legal and ethical issues. The auditors should ensure that the reserve is accurate, reasonable, and based on reliable factors such as the cost of termination benefits, lease terminations, and other costs associated with restructuring.

Because of Conservatism Considerations,auditors Should Allow a Client to Overestimate