Evidence should be obtained for which of the following in a prospective financial information assurance engagement report (PFI) such as a forecast or projection?
A) that the assumptions used by management are appropriate
B) that the PFI was prepared at the same time as the historical financial statements
C) that the PFI gives a true and fair view
D) evidence should be obtained for all of the above

Question

Quizplus · Accepted Answer

Evidence should be obtained to ensure that the assumptions used by management in preparing the prospective financial information (PFI) are appropriate. This involves assessing whether the assumptions are reasonable and suitably supported, as they form the basis for the forecast or projection. The timing of the PFI preparation relative to the historical financial statements (B) and whether the PFI gives a true and fair view (C) are not typically direct objectives of obtaining evidence in a PFI assurance engagement.

Evidence Should Be Obtained for Which of the Following in a Prospective