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AUD Prep

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Question:

Prospective Financial Statements - A company hired a practitioner to perform an examination of prospective financial statements. The practitioner concluded that the assumptions did not provide a reasonable basis for the prospective financial statements. Which of the following types of opinion should the practitioner issue?

Author: Monique Tyler



Answer:

Adverse When the underlying assumptions do not provide a reasonable basis for the prospective financial statements, the practitioner should issue an adverse (not unqualified) opinion


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