Multiple Choice
Which of the following procedures would an auditor ordinarily perform first in evaluating management's accounting estimates for reasonableness?
A) Develop independent expectations of management's estimates.
B) Consider the appropriateness of the key factors or assumptions used in preparing the estimates.
C) Test the calculations used by management in developing the estimates.
D) Obtain an understanding of how management developed its estimates.
Correct Answer:
Verified
Correct Answer:
Verified
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