When evaluating accounting estimates, the auditor would not concentrate on which of the following key factors and assumptions?
A) Those that are within budgetary expectations.
B) Those that are subjective and susceptible to misstatement and bias.
C) Those that are inconsistent with current economic trends.
D) Those that are sensitive to variations.

Question

Quizplus · Accepted Answer

The auditor would not concentrate on accounting estimates that are within budgetary expectations since it does not necessarily increase the risk of misstatement in the financial statements. The auditor's focus is primarily on estimates that are subjective, susceptible to misstatement and bias, inconsistent with current economic trends, and sensitive to variations.

When Evaluating Accounting Estimates, the Auditor Would Not Concentrate on Which