The amount of estimation uncertainty is affected by the nature of which of the following?
A)Accounting estimate
B)Auditing estimate
C)Management bias
D)Accounting disclosure

Question

Quizplus · Accepted Answer

The amount of estimation uncertainty is affected by the nature of accounting estimate, as it involves making judgments and assumptions about future events or outcomes. Auditing estimate refers to the auditor's evaluation of the reasonableness of accounting estimates, which is different from the nature of the estimate itself. Management bias and accounting disclosure may impact the reliability of the estimate but do not directly affect estimation uncertainty.

The Amount of Estimation Uncertainty Is Affected by the Nature