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audreyP
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| Posted: 18 Apr 2012 at 16:41 | IP Logged
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It is from Wiley simulation problem.
7. Perform a review of a forecast the company has prepared for the
coming year.
Choices:
May provide, independence is required
May provide, independence is not required
May not provide
The answer is: May not provide
I don't understand why a CPA firm may not provide a review of a
forecast? Can someone please explain it to me?
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striveforcpa
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| Posted: 18 Apr 2012 at 19:35 | IP Logged
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I raised this question to myself too...but I couldn't find
enough explanation except what has been written under AT
301 financial forecasts and projections; In short it says,
CPAs provide compilations, examinations and agreed upon
procedures in respect with prospective financial statements
but CPAs do not perform reviews on prospective information
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BEC 11/11 83
REG 02/29 88
AUD 04/20 76(God is great)
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audreyP
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| Posted: 18 Apr 2012 at 20:09 | IP Logged
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Striveforcpa, thank you! AT 301 does explain it. :)
It is almost your exam day. Good luck!
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REG - 2/28/12 pass 87
FAR - 4/11/12 pass 91
AUD - 5/4/12 pass 93
BEC - 5/24/12
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striveforcpa
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| Posted: 19 Apr 2012 at 08:26 | IP Logged
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Yes it is tomorrow; thank you!!!!
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FAR 10/11 84
BEC 11/11 83
REG 02/29 88
AUD 04/20 76(God is great)
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gjtseng
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| Posted: 19 Apr 2012 at 08:33 | IP Logged
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well.....becuase review is often perfom on the historical stuff. Generally, you don't perform a review on future stuff because it havn't even happened yet!! Therefore, we only do compile and exam on the forcast and projection.
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