In an examination engagement for prospective financial statements, the CPA obtains satisfaction as to the completeness and reasonableness of all the assumptions.

Question

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In an examination engagement for prospective financial statements, the CPA is responsible for obtaining reasonable assurance about whether the prospective financial statements, including the underlying assumptions, are free from material misstatement, whether due to fraud or error. This involves evaluating the completeness and reasonableness of all the assumptions used in preparing the prospective financial statements.

In an Examination Engagement for Prospective Financial Statements, the CPA