The management of Williams Co. is considering issuing corporate debentures. To enhance the marketability of the bond issue, management has decided to include a financial forecast in the prospectus. Management has requested that your CPA firm examine the financial forecast to add credibility to the prospective information.
a. Explain what is involved in an examination of a financial forecast.
b. Discuss the elements of a report on the examination of a financial forecast. (Do not write a report.)