An auditor's standard report on the examination of a forecast should not include a:
A) statement that the prospective results may not be achieved.
B) an opinion on the reasonableness of management's assumptions.
C) statement that the auditor expresses only limited assurance that the results may be achieved.
D) disclaimer of responsibility to update the report for events occurring after the report's date.

Question

Quizplus · Accepted Answer

An auditor's standard report on the examination of a forecast typically includes statements about the potential for actual results to differ from the forecast (A), the reasonableness of management's assumptions (B), and a disclaimer of responsibility for updating the report for future events (D). However, it does not include a statement that the auditor expresses only limited assurance that the results may be achieved, as the auditor's objective is to provide reasonable assurance about whether the forecast is presented in accordance with the applicable financial reporting framework.

An Auditor's Standard Report on the Examination of a Forecast