Which of the Following Is the Most Difficult Part of Auditing

question 69

Multiple Choice

Which of the following is the most difficult part of auditing a forecast?

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

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Definitions:

Principle of Conservation

A concept in cognitive development theory that an object's volume, mass, or quantity remains the same despite changes in its shape or form, usually understood by children during the concrete operational stage.

Quantity of a Substance

The quantity of a substance refers to the amount or number of units of that substance, which can be measured in various units depending on the physical property being observed.

Shape Change

The process of an object or entity altering its form, structure, or outline.

Mutual Adjustment

A process of communication and negotiation between parties to adapt to each other's needs or actions.