The auditor's responsibility for accounting estimates made by management that are incorporated in the financial statements is to evaluate their reasonableness.

Question

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The auditor is responsible for evaluating the reasonableness of accounting estimates made by management and incorporated in the financial statements, in accordance with auditing standards. This includes assessing whether the estimates are based on appropriate assumptions and methodologies, and whether the disclosures related to the estimates are adequate.

The Auditor's Responsibility for Accounting Estimates Made by Management That