Prior to Accepting an Engagement to Examine a Financial Forecast

Multiple Choice

Prior to accepting an engagement to examine a financial forecast or projection included in a prospectus or other public offering document,the public accountant should

A) obtain an understanding of the controls over preparation of internal forecasts such as budgets.
B) increase the risk profile of the client with respect to management integrity.
C) ensure that management will provide sufficient evidence to conduct the engagement.
D) inform the client that the engagement may not detect errors in the client's forecasts.