What information would you use to gain confidence in their valuation?
- If you were auditing the luggage company, how would you gain confidence in management’s accounting for warranty claims?
- Would you assume the company adequately accounts for the number of people who might make claims?
- What information would you use to gain confidence in their valuation?
- What are some other warranty situations where it is more of a guessing game as to how many claims could be filed in any given year?
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