The Most Difficult Part of Auditing a Forecast Is

question 103

Multiple Choice

The most difficult part of auditing a forecast is:

• A) evaluating the reasonableness of the assumptions used in its preparation.
• B) ensuring adequacy of disclosure.
• C) establishing the likelihood of future events occurring.
• D) establishing the real purpose of the forecast.

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Definitions:

Factor of Production

Resources used in the production of goods and services, such as labor, capital, land, and entrepreneurship.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a specific time period.

Productivity

Refers to the efficiency of production in terms of units produced per unit of input, such as labor or capital.

Resource

A resource is any physical or virtual entity of limited availability that needs to be consumed to obtain a benefit.