Which of the Following Procedures Is Not Appropriate for Examining

question 39

Multiple Choice

Which of the following procedures is not appropriate for examining or reviewing pro forma financial information?

• A) Obtaining less evidence in an examination engagement than in a review engagement.
• B) Obtaining an understanding of the underlying transaction or event.
• C) Discussing management's assumptions regarding the effects of the transaction or event.
• D) Evaluating whether pro forma adjustments are completely recorded.

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Definitions:

Destructive Competition

A form of rivalry where the actions of competitors are deliberately aimed at damaging each other's prospects, often leading to a negative sum outcome.

Restricted Communication Networks

Link subgroups that disagree with one another’s positions.

Group Decision Making

Group decision making is the process by which a group of individuals come together to make a decision, often involving deliberation, discussion, and consensus.

Decision by Unanimity

Decision by unanimity occurs when all members of a group or committee agree on a particular decision or outcome without dissent.