Which of the following is not an example of management's policies and procedures over the preparation of accounting estimates?
A)Accumulation of relevant,sufficient,and reliable data.
B)Preparation of estimates by qualified personnel.
C)Review by the independent auditor.
D)Consideration by management of whether the accounting estimates are consistent with the company's operational plans.

Question

Quizplus · Accepted Answer

Review by the independent auditor is not an example of management's policies and procedures over the preparation of accounting estimates. This is because the independent auditor is an external entity and not a part of the company's management. Therefore, reviewing by the auditor is not a policy or procedure monitored by management, but rather an aspect of the auditor's work. A, B, and D are examples of management's policies and procedures over the preparation of accounting estimates.

Which of the Following Is Not an Example of Management's