Hamell Corporation Is Making a Presentation to a Prospective Investor

question 19

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:

Daniel Dulany

Daniel Dulany was an 18th-century American colonial leader and Loyalist, known for his writings opposing British tax policies prior to the American Revolution.

Imposing Taxes

The act of establishing and enforcing mandatory contributions to be paid by individuals or businesses to support government activities and services.

British Colonies

Territories under British rule during the age of exploration and empire, significant for the spread of English language, culture, and economic systems worldwide.

Townshend Duties

The Townshend Duties were a series of British taxes on colonies in America imposed in 1767 on imports such as tea, glass, and paper, which sparked widespread protests.