Evidence Should Be Obtained for Which of the Following in a Prospective

question 31

Multiple Choice

Evidence should be obtained for which of the following in a prospective financial information assurance engagement report (PFI) such as a forecast or projection?

• A)That the assumptions used by management are appropriate.
• B)That the PFI was prepared at the same time as the historical financial statements.
• C)That the PFI gives a true and fair view.
• D)Evidence should be obtained for all of the above.

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Definitions:

Poor Financial Control

Refers to inadequate management of finances, leading to inefficiencies, financial instability, or loss.

Growing Too Fast

A situation where a company or organization expands at a rate that is unsustainable, often leading to operational, financial, or quality control issues.

Lack of Strategy

A situation where there is an absence of a clear plan or direction, often leading to ineffective decision-making and organizational performance.

Strategic Leadership

Involves making decisions that ensure an organization's long-term growth, focus, and success, considering the broad and future implications.