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Exam Code: MS-740

Exam Name: Troubleshooting Microsoft Teams

Certification Provider: Microsoft

Related Certification: Troubleshooting Microsoft Teams

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NEW QUESTION: 1

A. DATE
B. NUMBER
C. TEXT
D. BLOB
Answer: A,B,C

NEW QUESTION: 2
In evaluating an entity's accounting estimates, one of the auditor's objectives is to determine whether the
estimates are:
A. Consistent with industry guidelines.
B. Based on verifiable objective assumptions.
C. Prepared in a satisfactory control environment.
D. Reasonable in the circumstances.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Choice "D" is correct. The auditor has four responsibilities with respect to evaluating estimates: to assess
management's practices, to verify that all material estimates have been developed, to determine that
accounting estimates are reasonable, and to ensure that accounting estimates are properly recorded and
disclosed.
Choice "A" is incorrect. With respect to accounting estimates, the auditor would only be concerned with the
entity's control environment in terms of assessing management's policies and practices. It might be the
case that the control environment is less than satisfactory, but as long as management has taken this into
account, and has properly developed, presented, and disclosed all material estimates, the poor control
environment is irrelevant.
Choice "B" is incorrect. The auditor is concerned with making sure that management has properly
developed, presented, and disclosed all material estimates. Whether or not those estimates are consistent
with industry guidelines is not a concern, as long as the estimates are reasonable in the circumstances.
Choice "C" is incorrect. Estimates need not be based on verifiable objective assumptions. In fact, many
estimates are subjective, and can be susceptible to misstatement. The auditor should evaluate whether
management has properly developed, presented, and disclosed all material estimates.


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