[Tootsie]

So I thought it could be fun to have a game where we post AUD questions to help us study and if you know the answer, post it and ask another question. I’ll go first. What are the 10 GAAS?

FAR - 76
AUD - 88!!! DONE!!!!!!!!
BEC - 76
REG - 77

never, never, never give up

[SeattleAccountant]

@jaredo155

I disagree with projection being based on predicted future market conditions. Forecast is one that uses historical data + predicted/anticipated market conditions (general use but user is warned that results might be different).

Projection does not utilize prediction/trend but rather represents completely hypothetical scenario similar to Excel “what if” analysis.

Accordingly, projection has to restricted as to not completely mislead the outsiders. For the inside purposes, “what if” analysis is frequently done for various reasons like to evaluate leverage issues, acquisitions and mergers, etc.

Becker Class of Jan - Aug 2013: FARB DONE!!!!
CPA license pending 🙂

[SeattleAccountant]

and another one:

Pro forma F/S are prospective OR retrospective F/S and why?

Becker Class of Jan - Aug 2013: FARB DONE!!!!
CPA license pending 🙂

[jamesb]

@SeattleAccountant…Pro Forma F/S are not Prospective F/S, because Pro forma rely on past history results. I dont remember seeing retrospective F/S in my Becker notes.

Q–When Auditors finds out about Subsequent event, after issuance of F/S, What are Auditor responsibility regarding that subsequent event?

AUD: TBA-
FAR Done
BEC Done

Becker
NINJA for AUD

[SeattleAccountant]

@ jamesb, yes you got it.

Pro Forma F/S are historical-based (retrospective point of view). This is to distinguish from the only two F/S types that are prospective: Forecasts & Projections.

Becker Class of Jan - Aug 2013: FARB DONE!!!!
CPA license pending 🙂

[Author]

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