OGBA-101 - TOGAF Business Architecture Foundation Exam
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OGBA-101
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TOGAF Business Architecture Foundation Exam
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94 Q&A
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NEW QUESTION: 1 An examination of a financial forecast is a professional service that involves: A. Limiting the distribution of the accountant's report to management and the board of directors. B. Compiling or assembling a financial forecast that is based on management's assumptions. C. Assuming responsibility to update management on key events for one year after the report's date. D. Evaluating the preparation of a financial forecast and the support underlying management's assumptions. Answer: D Explanation: Explanation/Reference: Explanation: Choice "d" is correct. An examination of a financial forecast is a professional service that involves: 1) evaluating the preparation of the prospective financial statements, 2) evaluating the support underlying the assumptions, 3) evaluating the presentation of the prospective financial statements in conformity with AICPA guidelines, and 4) issuing an examination report. Choice "a" is incorrect. Compiling or assembling a financial forecast based on management's assumptions is part of a compilation engagement, not an examination engagement. Choice "b" is incorrect. A financial forecast may be issued for general use. Choice "c" is incorrect. The accountant's standard report specifically states that the accountant assumes no responsibility to update the report for events and circumstances occurring after the date of the report.
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