In evaluating the reasonableness of an estimate, the auditor would not normally concentrate on which of the following factors and assumptions?
A) Subjective judgments that introduce bias.
B) Deviations from historical patterns.
C) Amounts that are inconsistent with current economic trends.
D) All of these are a focus of the auditor regarding reasonable estimates.

Question

Quizplus · Accepted Answer

All of these factors are a focus of the auditor when evaluating the reasonableness of an estimate. The auditor should assess whether the assumptions used by management are supportable given the available information, and whether there are any factors that may require adjustments to the estimates. The auditor should also be alert to any biases or inconsistencies in the estimation process, and consider whether the estimates are consistent with current economic trends or other relevant factors.

In Evaluating the Reasonableness of an Estimate, the Auditor Would