If Monson believes the accountant can issue an opinion about the achievability of the forecast, but later finds that

such an opinion cannot be given,

Monson is likely to be unhappy. The result would be

a loss of fee, loss of a client for other services, and perhaps even a lawsuit. Similarly, Monson must understand his responsibilities concerning the

of the assumptions and other aspects of the report, again to avoid a misunderstanding later.

Requirement $c.$ What information will Monson have to provide to you before you can complete the forecasted statements? Be as specific as possible

The primary information the CPA firm will need to help in completing the forecast are the following: $($Select all that apply.$)$

A$.$ The result of the internal control testing performed.

B$.$ Information about the offer he has made for the reww business and the offer he has received for the existing assets. Because the finan

statements will be a forecast, and not a projection, it is necessary to determine that there is a reasonable likelihood of the transaction be

completed and the forecasted result, assuming both transactions are finalized.

C$.$ The value of Major Products Manufacturing Company.

D$.$ Information about the economic conditions of the industry. The CPA firm will likely need knowledge beyond that required for performing the audits.

E$.$ Audited financial statements for the past several years.