What Is the Best Reason That Standards Prohibit Accepting an Engagement

question 123

Multiple Choice

What is the best reason that standards prohibit accepting an engagement on a projection for general use?

• A) The CPA's procedures would violate SSARS.
• B) Reports on projections are not well understood by the general public.
• C) Underlying hypothetical assumptions are difficult to interpret without obtaining additional information.
• D) The CPA is not qualified to report on the use of GAAP in the projected financial statement.

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Definitions:

Moral Conscience

An inner sense of right and wrong that guides a person's beliefs and actions.

Personality

The unique combination of emotional, attitudinal, and behavioral response patterns of an individual.

Superego

In Freudian psychoanalysis, the part of the personality that acts as a moral center, enforcing ethical conduct and striving for perfection.

Personality Structure

The organization of an individual's distinct traits, behaviors, and patterns of thinking, which contribute to their unique personality.