Accepting an engagement to compile a financial projection for a public company most likely would be inappropriate if the projection were to be distributed to
A) A bank with which the entity is negotiating for a loan.
B) A labor union with which the entity is negotiating a contract.
C) The principal stockholder, to the exclusion of the other stockholders.
D) All stockholders of record as of the report date.

Question

Quizplus · Accepted Answer

Distributing a financial projection to all stockholders of a public company is inappropriate because projections are typically intended for limited use and not for general distribution to all stockholders.

Accepting an Engagement to Compile a Financial Projection for a Public