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Question: An assurance practitioner has been asked to carry out a review of a sales forecast that has been prepared by management that will be issued to shareholders. The forecast predicts that sales will substantially increase next year, on the assumption that a new store location for the business will be opened just before the end of the financial year.
(i) What disclosures should the practitioner expect the client to make in the forecast so that the user is able to make judgments about the uncertainties attached to the forecasted increase in turnover?
(ii) What other factors need to be considered by the practitioner?
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