Hamell Corporation is making a presentation to a prospective investor.The presentation includes a projection showing that the company's sales will be between $25,000,000 and $27,000,000 within the next three years.Hamell believes the information will be better received if its CPA provides an attestation report on the projection.In order to provide such a report,the CPA must do all of the following except
A) Obtain knowledge about the client's business.
B) Evaluate the assumptions used in preparing the projection.
C) Confirm expected sales with customers.
D) Identify key factors affecting the information.

Question

Quizplus · Accepted Answer

The CPA does not need to confirm expected sales with customers in order to provide an attestation report on a sales projection. However, the CPA does need to obtain knowledge about the client's business, evaluate the assumptions used in preparing the projection, and identify key factors affecting the information.

Hamell Corporation Is Making a Presentation to a Prospective Investor