alleryStart learning →What is the key aspect of preparing a financial forecast, from which costs are then estimated?
ASetting tax rates
BPredicting revenue
CChoosing auditors
DFixing audit fees
Answer & Solution
Correct answer: B. Predicting revenue
Revenue is predicted first, and fixed, variable and capital costs are then estimated as a function of sales.
Keep practising System and Organization Controls
Browse all System and Organization Controls questions for CA Final, or explore more Auditing topics.
Related questions
Which audit checks the strategic fit of a deal?Reverse due diligence is an assessment of a company, usually by a third party on its behalWhich examination of a potential target is normally carried out by a buyer before a mergerWhy do lenders and investors require pro forma statements?How should pro forma figures be presented relative to reported past figures?Pro forma statements precedeWhich group of companies boomed in pro forma reporting from the late 1990s to recast lossePro forma use to mask GAAP figures is