Which of the following is an example of a reasonableness test?
A)Estimate the account balance and determine whether that amount is close to what the client recorded.
B)Inquire whether significant changes have been made.
C)Tour the production facilities.
D)Send confirmations to major vendors.

Question

Quizplus · Accepted Answer

A reasonableness test involves evaluating whether the recorded amounts are reasonable based on other information or estimates. Estimating the account balance and comparing it to the recorded amount is an example of a reasonableness test. Inquiring about significant changes, touring production facilities, and sending confirmations to vendors are examples of other audit procedures that may be used to gather evidence, but are not specific examples of reasonableness tests.

Which of the Following Is an Example of a Reasonableness