Why do standards prohibit accepting an engagement on a projection for general use?
A) The auditor is not qualified to report on the use of accounting standards in the projected financial statement.
B) Underlying hypothetical assumptions are difficult to interpret without obtaining additional information.
C) Reports on projections are not well understood by the general public.
D) The auditor's procedures would violate auditing standards.

Question

Quizplus · Accepted Answer

Projections are based on hypothetical assumptions, which can be difficult for users to interpret without additional context or information, making them unsuitable for general use.

Why Do Standards Prohibit Accepting an Engagement on a Projection