Page 185 - COSO Guidance Book

adjustments for the current year under audit). This might cause the auditor to focus on areas that do not
really present problems. The auditor might respond to this issue by doing one of the following:

 Estimate the amounts of expected adjustments based on prior years’ amounts and make preliminary
adjustments to current-year amounts for comparison purposes.
 Estimate the amounts of expected adjustments based on prior years’ amounts and use them to
explain related significant differences in comparisons.
 Limit the comparisons to amounts that are not likely to require significant adjustments.

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