[Anonymous]

When third-party use of prospective financial statements is expected, an accountant may not accept an engagement to

Perform a review.

Perform a compilation.

Perform an examination.

Apply agreed-upon procedures.

A. This answer is correct because the professional standards which present the standards with respect to the accountant’s obligations for prospective financial statements (forecasts and projections), does not allow for the review form of association under any circumstance.

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What’s wrong with performing a review?

[ruggercpa2b]

I was looking at my notes and it says that for forecasts the accounting services that can be performed are examinations, compilations and agreed upon procedures.

AUD - 73, 72 retake 7/2/2016
BEC - 8/20/2016
REG - TBD
FAR - TBD

I am so ready for this nightmare to be over. Been at this way too long.

[M.O.D.]

Prospective financial statements are not real financial statements.

They cannot be audited or reviewed, as there is no evidence or accounts to audit or review.

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[Author]

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