1. Which of the following statements concerning prospective financial statements is correct? Only a financial forecast would normally be appropriate for limited (a) (b) (c) (d) use. Any type of prospective financial statement would normally be appropriate for general use Any type of prospective financial statement would normally be appropriate for limited use. Only a financial projection would normally be appropriate for general use. A CPA has been engaged to compile financial statements for a nonpublic client. Which of the following statements best describes this engagement? (a) The CPA must perform the basic accepted auditing procedures (b) (c) (d) necessary to determine that the statements are in conformity with GAAP. The CPA is performing an accounting service rather than an examination of financial statements. The financial statements are representations of both management and the CPA The CPA may prepare the statements from the books but may not assist in adjusting and closing the books. Negative assurance may be provided when an independent accountant is requested to report on the: (a) Compilation of prospective financial statements. (b) Audit of historical financial statements. (c) Examination of financial statements prepared 3. on an other comprehensive basis of accounting (special purpose framework). Results of applying agreed upon procedures to an account within unaudited financial statements. (d)