Which of the Following Procedures Would an Auditor Ordinarily Perform

Multiple Choice

Which of the following procedures would an auditor ordinarily perform first in evaluating the reasonableness of management's accounting estimates?

A) Review transactions occurring prior to the completion of field work that indicate variations from expectations.
B) Compare independent expectations with recorded estimates to assess management's process.
C) Obtain an understanding of how management developed its estimates.
D) Analyze historical data used in developing assumptions to determine whether the process is consistent.