The auditor should have a sound basis, supported by objective evidence, regarding accounting estimates and should not fall victim to an "all estimates are subjective" argument in order to waive which of the following?
a. Contingent liability.
b. Material misstatements.
c. Unrecorded liability.
d. Material adjustments.
d
You might also like to view...
The confidence factor for nonstatistical sampling is based on:
A. the number of items in the account. B. auditor judgment. C. variability in the population and the risk of misstatement in the account. D. the risk of misstatement in the account and the level of desired confidence.
If a selection test is not ______, it cannot be valid.
A. personal B. critical C. negligent D. reliable
Abolition of the privity limitation opened the door for negligence as a theory of liability when people were injured because of a product manufacturer's or seller's lack of care
Indicate whether the statement is true or false
Using the passive voice when discussing a reader's mistake is often appropriate
Indicate whether the statement is true or false