When a financial forecast fails to disclose a significant assumption used to prepare that forecast, which of the following reports become appropriate? $$\begin{array} { | c | c | c | }
\hline & \text { Qualified } & \text { Adrerse } \
\hline \text { A. } & \text { Yes } & \text { Yes } \
\hline \text { B. } & \text { Yes } & \text { No } \
\hline \text { C. } & \text { No } & \text { Yes } \
\hline \text { D. } & \text { No } & \text { No } \
\hline
\end{array}$$
A) Option A
B) Option B
C) Option C
D) Option D

Question

When a financial forecast fails to disclose a significant assumption used to prepare that forecast, which of the following reports become appropriate? $$\begin{array} { | c | c | c | } 
\hline & \text { Qualified } & \text { Adrerse } \
\hline \text { A. } & \text { Yes } & \text { Yes } \
\hline \text { B. } & \text { Yes } & \text { No } \
\hline \text { C. } & \text { No } & \text { Yes } \
\hline \text { D. } & \text { No } & \text { No } \
\hline
\end{array}$$
A) Option A
B) Option B
C) Option C
D) Option D

Quizplus · Accepted Answer

An adverse report is appropriate when there is a failure to disclose a significant assumption, as it indicates that the financial forecast is not presented fairly.

When a Financial Forecast Fails to Disclose a Significant Assumption