Author Question: Egan, a forensic accountant, was appointed for a business valuation engagement by the management of ... (Read 80 times)

amal · **on:** Jul 6, 2018

Egan, a forensic accountant, was appointed for a business valuation engagement by the management of Dreamsong, Inc He qualified the purpose of the valuation, type of engagement, and the ownership interest to be considered.

What should be Egan's next step?
A) Issue the valuation report.
B) Estimate the value of the business.
C) Gather the necessary information.
D) Analyze the information gathered.

Question 2

The general ledger is a collection of all the accounts.
a. True
b. False
Indicate whether the statement is true or false

zogaridan · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

C
Explanation: C) In the context of business valuations, there are five basic steps:
1. Define the engagement.
2. Gather the necessary information.
3. Analyze the information gathered.
4. Estimate the value of the business.
5. Issue the valuation report.
Egan has performed the functions needed to define the engagement. The next step is to gather the necessary information.

Answer to Question 2

True