Q8

1. When performing procedures to identify and assess the risks of material misstatement for accounting estimates, the auditor should

   	A.	Analyze historical data used in developing assumptions to determine whether the process is consistent.
   	B.	Obtain an understanding of how management developed its estimates.
   	C.	Compare independent expectations with recorded estimates to assess managements process.
   	D.	Review transactions occurring prior to the date of the auditors report that indicate variations from expectations.