Accepting an Engagement to Compile a Financial Projection for a Public

question 86

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.

---

Definitions:

Bipolar

A mental disorder characterized by extreme mood swings, including emotional highs (mania or hypomania) and lows (depression).

Lithium

A chemical element and mood-stabilizing drug used primarily in the treatment of bipolar disorder and other mood disorders.

Positive Feelings

Emotions and sensations that are pleasant, uplifting, or conducive to well-being.

Bipolar Disorder

A mental health condition characterized by extreme mood swings including emotional highs (mania or hypomania) and lows (depression).