With regard to the review of accounting estimates:
A) prior years' estimates should be examined for consistency.
B) significant changes in estimating procedures are prohibited.
C) the concealment of fraud through estimates is hard since all estimates can be directly tied to the individual responsible for them.
D) All of the choices are correct.

Question

Quizplus · Accepted Answer

Examining prior years' estimates for consistency is a standard procedure in reviewing accounting estimates. It helps identify any changes in estimates that may be inconsistent with historical patterns and require further investigation. Since fraud can be concealed through estimates, it is important to review them carefully to detect any irregularities or inconsistencies. Significant changes in estimating procedures may be necessary in certain situations, but they should be properly disclosed and explained to ensure transparency and consistency.

With Regard to the Review of Accounting Estimates