Lesson: AUP on Projected Financial Statements

This lesson focuses on the use of agreed-upon procedures for projected financial statements. It explains the necessity of including a summary of significant assumptions in such statements to demonstrate that they are not guaranteed figures but rather projections based on certain premises. The lesson also provides an overview of the agreed-upon procedure engagement, where the CPA firm and client agree on specific procedures to be performed related to the client's assumptions and methods for preparing projections. The CPA firm then reviews the accuracy and completeness of data used and ultimately issues a report on their findings and conclusions.