An Accountant's Report on a Review of Pro Forma Financial

question 602

Multiple Choice

An accountant's report on a review of pro forma financial information should include a:

• A) Statement that the entity's internal control was not relied on in the review.
• B) Disclaimer of opinion on the financial statements from which the pro forma financial information is derived.
• C) Caveat that it is uncertain whether the transaction or event reflected in the pro forma financial information will ever occur.
• D) Reference to the financial statements from which the historical financial information is derived.

---

Definitions:

Contracts

Contracts are legally binding agreements between two or more parties that outline terms and conditions and are enforceable by law.

Variance

A statistical measure that represents the degree of spread or dispersion of a set of data points, or the difference between expected and actual performance.

Zoning Commissions

Governmental bodies that oversee the implementation of zoning regulations, determining how land within their jurisdiction can be used and developed.

Regulation

Regulation involves the establishment and enforcement of rules or laws by government or regulatory bodies to govern the behavior of companies, industries, or markets, often for the purpose of protecting public interest.