Exhibit provides examples of questions that an auditor should ask when assessing inherent risk relating to financial reporting.

The first question asks, "What are the significant judgment areas (reserves, contingencies, asset values, note disclosures) that affect the current year financial statements?" Access the most recent financial statements of Microsoft, Dell, and Apple. For each company, locate the footnote disclosure that would answer the question about significant judgment areas (often labeled as estimates and assumptions). Briefly summarize the major judgment areas for these companies, and comment on any differences that you observe.