Question: The client makes estimates relative to recorded amounts in the financial statements. Which of the following assumptions best represents the auditor's primary focus regarding the
The client makes estimates relative to recorded amounts in the financial statements. Which of the following assumptions best represents the auditor's primary focus regarding the reasonableness of such estimates?
Select one:
a.
That historical trends are followed.
b.
That income is managed.
c.
That there is an adequate cushion.
d.
That management reverses estimates when opportune.
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