Which of the following is the most difficult part of auditing a forecast?
A) ensuring adequacy of disclosure
B) evaluating the reasonableness of the assumptions used in its preparation
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 the preparation of the forecast is the most difficult part of auditing a forecast. This is because it requires the auditor to have a deep understanding of the industry and economic factors that can impact the forecast, as well as being able to assess the accuracy and reliability of the inputs used in the forecast. The other options listed are important considerations in auditing a forecast, but they are not as challenging as assessing the reasonableness of the assumptions.

Which of the Following Is the Most Difficult Part of Auditing