Accepting an Engagement to Compile a Financial Projection for a Public

question 51

Multiple Choice

Accepting an engagement to compile a financial projection for a public company most likely would be inappropriate if the projection were to be distributed to:

• A)a bank with which the entity is negotiating for a loan.
• B)a labor union with which the entity is negotiating a contract.
• C)the principal stockholder, to the exclusion of the other stockholders.
• D)all stockholders of record as of the report date.

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