- 1 Marks
Question
Investigation under investment decision will NOT include:
A. Loan facility decision
B. Purchase of shares
C. Purchase of business
D. Reporting on profit forecast
E. Partnership participation
Answer
D. Reporting on profit forecast
Explanation:
“Reporting on profit forecast” is not typically part of an investigation under investment decisions. Investment decision investigations usually focus on areas directly impacting investment choices, such as evaluating loan facilities, share purchases, business acquisitions, and partnership opportunities. Profit forecasts may be considered in financial planning but are generally not the core focus of an investment decision investigation.
- Tags: Financial Analysis, Investigation, Investment Decision, Profit Forecast
- Level: Level 3
- Topic: Assurance Engagements
- Series: NOV 2012
- Uploader: Dotse