Final answer:
The auditor would not concentrate on factors and assumptions that are within budgetary expectations when evaluating accounting estimates, as these are not inherently indicative of potential misstatement or bias. The correct option is a.
Step-by-step explanation:
When evaluating accounting estimates, the auditor would typically concentrate on several key factors and assumptions to ensure the integrity of the financial statements. These include factors and assumptions that are subjective and susceptible to misstatement and bias, those that are inconsistent with current economic trends, and those that are sensitive to variations. However, they would not especially focus on factors and assumptions that are within budgetary expectations since these are generally predetermined targets or benchmarks that the company aims to meet or has based its assumptions upon, rather than being inherently indicative of potential misstatement or bias.
When evaluating accounting estimates, the auditor would not concentrate on those that are within budgetary expectations.
The auditor focuses on key factors and assumptions that are subjective and susceptible to misstatement and bias, as these are more likely to have an impact on the accuracy of financial statements. They also consider those that are inconsistent with current economic trends as they may indicate potential errors or misleading information.
The auditor would also concentrate on those that are sensitive to variations as they could affect the financial results of the company.