Auditing and Attestation - Certified Public Accountant (CPA) Practice Exam 2026 - Free CPA Practice Questions and Study Guide

When formulating an opinion on financial statements, an auditor primarily focuses on the factual content and compliance of the financial statements with applicable accounting standards. Among the listed factors, earnings forecasts by investors do not directly pertain to the financial statements being audited. Instead, auditors assess the accuracy of the financial statements themselves, which includes evaluating management's accounting estimates for reasonableness, ensuring adequate disclosures are present, and reviewing the terminology for clarity and compliance with relevant standards.

Earnings forecasts are subjective opinions held by investors about future performance and are not typically included in the financial statements of the entity. Therefore, while they may provide context for user analysis or future performance, they do not fall within the scope of what an auditor evaluates when forming an opinion on the financial statements.