Page 226 - AAA Integrated Workbook STUDENT S18-J19

Chapter 143 4

Procedures

The practitioner must:

 Evaluate whether all significant assumptions required for the PFI have been
identified.

 Obtain an understanding of the processes used to prepare the PFI.

 Evaluate the reasonableness of PFI prepared in prior periods.

 Assess the reasonableness of the assumptions used by management.

 Evaluate whether the PFI has been prepared on the basis of the assumptions of
management.

Procedures include:

 Enquiries

 Analytical procedures

 Recalculation

 Inspection

 Obtaining written representation from management regarding:

– the intended use of the PFI

– the completeness of significant management assumptions

– management's acceptance of its responsibility for the PFI.

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