Appropriate audit inquiries regarding estimates include all of the following except:
A)Who prepares the estimates?
B)Why are they prepared?
C)What data are used?
D)When are they prepared?

Question

Quizplus · Accepted Answer

The question "Why are they prepared?" is not an appropriate audit inquiry regarding estimates because the purpose of preparing estimates is generally understood within the context of financial reporting (e.g., for accruals, valuations, etc.). Audit inquiries typically focus on who prepares the estimates, what data are used, and when they are prepared to assess the reliability and relevance of the estimates.

Appropriate Audit Inquiries Regarding Estimates Include All of the Following