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NEW QUESTION: 1
Which of the following procedures would an auditor ordinarily perform first in evaluating management's
accounting estimates for reasonableness?
A. Obtain an understanding of how management developed its estimates.
B. Develop independent expectations of management's estimates.
C. Test the calculations used by management in developing the estimates.
D. Consider the appropriateness of the key factors or assumptions used in preparing the estimates.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Choice "D" is correct. In evaluating the reasonableness of an accounting estimate, the auditor should first
obtain an understanding of how management developed its estimate.
Choice "A" is incorrect. After first obtaining an understanding of how management developed its estimate,
the auditor should use one or a combination of the following approaches: a) review and test the process
used by management to develop the estimate, b) develop an independent expectation of the estimate to
corroborate the reasonableness of management's estimate, or c) review subsequent events.
Choice "B" is incorrect. After having first obtained an understanding of how management developed its
estimate, the auditor should consider testing management's process by assessing the appropriateness of
the key factors or assumptions used in preparing the estimate.
Choice "C" is incorrect. After first obtaining an understanding of how management developed its estimate,
the auditor should use one or a combination of the following approaches: a) review and test the process
used by management to develop the estimate, b) develop an independent expectation of the estimate to
corroborate the reasonableness of management's estimate, or c) review subsequent events.
NEW QUESTION: 2
A 9 digit number must be dialed to reach numbers on the PSTN. What process makes sure that the first digit 9 is not transmitted as part of the called number?
A. digit alternating
B. digit seizing
C. digit masking
D. digit manipulation
Answer: D
NEW QUESTION: 3
Who is an ideal customer for HPE MSA?
A. A small customer that is looking for a backup and data protection solution.
B. A mid-sized company that has mission-critical applications and requires 99.9999% availability.
C. A mid-sized company that wants a direct-attached storage solution.
D. A small company that is looking for an entry-level flash solution to be deployed in a SAN solution.
Answer: D
Explanation:
Explanation/Reference:
Reference: https://h20195.www2.hpe.com/v2/GetPDF.aspx/4AA5-6523ENW.pdf