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

Question

Quizplus · Accepted Answer

Choice "D" is correct. The accountant's report on compiled projected financial statements should include a separate paragraph that describes the limitations on the projection's usefulness. For example, the paragraph states that there will usually be differences between projected and actual results, and indicates that the accountant has no responsibility to update the report for events occurring after the date of the report. Choice "A" is incorrect. The accountant's report on compiled projected financial statements does not include an of the difference between a compilation and a review. Choice "B" is incorrect. The accountant's report on compiled projected financial statements does not document the assessment of the risk of material misstatement due to fraud. Choice "C" is incorrect. The accountant's report on compiled projected financial statements does not express limited assurance that the actual results may be within the projected range. In fact, it specifically states that no opinion or any other form of assurance is expressed, and that there usually will be differences between projected and actual results.

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