Which of the following is not an approach an auditor may choose when performing substantive procedures to test accounting estimates?
A)Test the company's process used to develop the accounting estimate.
B)Confirm the accounting estimate with a reliable third party expert.
C)Develop an independent expectation for comparison to the company's estimate.
D)Evaluate audit evidence from events or transactions occurring after the measurement date.

Question

Quizplus · Accepted Answer

Confirming the accounting estimate with a reliable third party expert is not a typical approach for performing substantive procedures to test accounting estimates. The other three options are commonly used methods, such as testing the company's process, developing an independent expectation, and evaluating audit evidence from events or transactions occurring after the measurement date.

Which of the Following Is Not an Approach an Auditor