When an accountant examines projected financial statements, the accountant's report should include a separate paragraph that:

Question

Quizplus · Accepted Answer

Choice "A," is correct. T,he accountant's standard report on an examination of projected financial statements should include a caveat that the projected results may not be achieved. T,his is included in a separate paragraph that describes the limitations on the usefulness of the presentation: "...there will usually be differences between the forecasted and actual results... [that] may be material." C,hoice "B," is incorrect. T,he accountant's report on the examination of projected financial statements would not include an of the differences between an examination and an audit. C,hoice "C," is incorrect. A, statement is included which specifically states that the accountant assumes no responsibility to update the report for events and circumstances occurring after the date of the report. C,hoice "D," is incorrect. T,he accountant does express an opinion that "the underlying assumptions provide a reasonable basis for management's forecast."

When an Accountant Examines Projected Financial Statements, the Accountant's Report