Hamell Corporation Is Making a Presentation to a Prospective Investor

question 14

Multiple Choice

Hamell Corporation is making a presentation to a prospective investor.The presentation includes a projection showing that the company's sales will be between $25,000,000 and $27,000,000 within the next three years.Hamell believes the information will be better received if its CPA provides an attestation report on the projection.In order to provide such a report,the CPA must do all of the following except

• A) Obtain knowledge about the client's business.
• B) Evaluate the assumptions used in preparing the projection.
• C) Confirm expected sales with customers.
• D) Identify key factors affecting the information.

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Definitions:

Mode

The value that appears most frequently in a given set of data.

Range

The difference between the highest and lowest values in a dataset, providing a measure of data dispersion.

Variance

A statistical measure that quantifies the spread or dispersion of a set of data points around their mean value.

Percentile

A value in a data set below which a certain percentage of observations fall.