Explanation Financial statements are generally having some estimates, assumptions and appraisals as practically at the yearend not all figures are known to the management. It is the duty of the Auditor to see whether a genuine, independent and logical process has been followed for arriving at such estimates and these estimates are aligned with the history of transactions and logical. Sometimes, management tries to use these estimates in misguiding the government agencies and outsiders so as to do some fraudulent transactions which are hidden behind these estimates. Management very well knows that nobody is going to verify the same as it has already been tagged as Estimates...

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN: 9781305080577

Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher: South-Western College Pub

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Question

Chapter 6, Problem 60RSCQ

To determine

Introduction: Auditor is supposed to understand the process which is followed to arrive at management estimates.

To understand: Auditor comes across certain estimates considered by the management, which he has to understand by proper study of the processes followed by the management for the same.

Expert Solution & Answer

Chapter 6 Solutions

Auditing: A Risk Based-Approach to Conducting a Quality Audit

Ch. 6 - Prob. 1TFQ Ch. 6 - Prob. 2TFQ Ch. 6 - Prob. 3TFQ Ch. 6 - Prob. 4TFQ Ch. 6 - Prob. 5TFQ Ch. 6 - Prob. 6TFQ Ch. 6 - Prob. 7TFQ Ch. 6 - Prob. 8TFQ Ch. 6 - Prob. 9TFQ Ch. 6 - Prob. 10TFQ

Ch. 6 - Prob. 11TFQ Ch. 6 - Prob. 12TFQ Ch. 6 - Prob. 13TFQ Ch. 6 - Prob. 14TFQ Ch. 6 - Prob. 15TFQ Ch. 6 - Prob. 16TFQ Ch. 6 - Prob. 17TFQ Ch. 6 - Prob. 18TFQ Ch. 6 - Prob. 19TFQ Ch. 6 - Prob. 20TFQ Ch. 6 - Prob. 21MCQ Ch. 6 - Prob. 22MCQ Ch. 6 - Prob. 23MCQ Ch. 6 - Prob. 24MCQ Ch. 6 - Prob. 25MCQ Ch. 6 - Prob. 26MCQ Ch. 6 - Prob. 27MCQ Ch. 6 - Prob. 28MCQ Ch. 6 - Prob. 29MCQ Ch. 6 - Prob. 30MCQ Ch. 6 - Prob. 31MCQ Ch. 6 - Prob. 32MCQ Ch. 6 - Prob. 33MCQ Ch. 6 - Prob. 34MCQ Ch. 6 - Prob. 35MCQ Ch. 6 - Prob. 36MCQ Ch. 6 - Prob. 37MCQ Ch. 6 - Prob. 38MCQ Ch. 6 - Prob. 39MCQ Ch. 6 - Prob. 40MCQ Ch. 6 - Prob. 41RSCQ Ch. 6 - Prob. 42RSCQ Ch. 6 - Prob. 43RSCQ Ch. 6 - Prob. 44RSCQ Ch. 6 - Refer to Exhibit 6.2 and describe the differences...Ch. 6 - Prob. 46RSCQ Ch. 6 - Prob. 48RSCQ Ch. 6 - Prob. 49RSCQ Ch. 6 - Prob. 50RSCQ Ch. 6 - Prob. 51RSCQ Ch. 6 - Prob. 52RSCQ Ch. 6 - Prob. 53RSCQ Ch. 6 - Indicate how the auditor could use substantive...Ch. 6 - Prob. 55RSCQ Ch. 6 - Prob. 56RSCQ Ch. 6 - Prob. 57RSCQ Ch. 6 - Prob. 58RSCQ Ch. 6 - Prob. 59RSCQ Ch. 6 - Prob. 60RSCQ Ch. 6 - Prob. 61RSCQ Ch. 6 - Prob. 62RSCQ Ch. 6 - Prob. 63RSCQ Ch. 6 - Prob. 64RSCQ Ch. 6 - Prob. 65RSCQ Ch. 6 - Prob. 66RSCQ Ch. 6 - Prob. 67RSCQ Ch. 6 - Prob. 68RSCQ Ch. 6 - Prob. 69FF Ch. 6 - Prob. 70FF Ch. 6 - Prob. 71FF Ch. 6 - Prob. 72FF Ch. 6 - MINISCRIBE (LO 1, 2) As reported in the Wall...

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Auditor is supposed to understand the process which is followed to arrive at management estimates. To understand: Auditor comes across certain estimates considered by the management, which he has to understand by proper study of the processes followed by the management for the same.

Solution Summary: The author explains that the auditor must understand the process followed by the management to arrive at management estimates.

Introduction: Auditor is supposed to understand the process which is followed to arrive at management estimates. To understand: Auditor comes across certain estimates considered by the management, which he has to understand by proper study of the processes followed by the management for the same.

Chapter 6 Solutions

Introduction: Auditor is supposed to understand the process which is followed to arrive at management estimates.

To understand: Auditor comes across certain estimates considered by the management, which he has to understand by proper study of the processes followed by the management for the same.