Question: Tanner CPA is conducting a second - year audit on its client, Lucas Manufacturing. Lucas Manufacturing offers a standard 5 - year warranty on all

Tanner CPA is conducting a second

-

year audit on its client, Lucas Manufacturing. Lucas Manufacturing offers a standard

5 -

year warranty on all products sold. The client calculates its accused product warranty based on historical trends in warranty claims and claims incurred to date. Traditionally, its estimates have proven reliable. How should Tanner CPA approach the audit of Lucas Manufacturing's accused warranty if the products sold are consistent with prior years?

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