The most difficult part of auditing a forecast is:
A) evaluating the reasonableness of the assumptions used in its preparation.
B) ensuring adequacy of disclosure.
C) establishing the likelihood of future events occurring.
D) establishing the real purpose of the forecast.

Question

Quizplus · Accepted Answer

Evaluating the reasonableness of the assumptions used in its preparation is the most difficult part of auditing a forecast as it requires analyzing various factors such as economic conditions, industry trends, historical performance, and management expertise to determine the accuracy and reliability of the assumptions used in the forecast. Ensuring adequacy of disclosure, establishing the likelihood of future events occurring, and establishing the real purpose of the forecast are also important aspects of auditing a forecast but they are comparatively less challenging.

The Most Difficult Part of Auditing a Forecast Is