Which of the following is not an acceptable manner of testing an audit client's estimates?
A) Compare subsequent actual amounts to the accounting estimates.
B) Recalculate accounting estimates using management's process.
C) Prepare an independent estimate and compare with management's result.
D) Observe management's process of calculating estimates.

Question

Quizplus · Accepted Answer

Observing management's process of calculating estimates is not a testing method; it is more about understanding the process rather than testing the accuracy or reasonableness of the estimates.

Which of the Following Is Not an Acceptable Manner of Testing