Page 229 - AAA Integrated Workbook STUDENT S18-J19

Prospective financial information

Reporting

Key elements of the report will include:

 Title and addressee.

 Identification of the subject matter i.e. the forecast information.

 Reference to any applicable laws or standards (e.g. ISAE 3400).

 A statement that it is management's responsibility to prepare the PFI.

 Reporting accountant's responsibilities and basis of opinion.

 A reference to the purpose and restricted distribution of the PFI.

 A statement of negative assurance as to whether the assumptions provide a
reasonable basis for the PFI.

 An opinion on whether the PFI is properly prepared on the basis of the
assumptions and is presented in accordance with the relevant financial
reporting framework.

 Appropriate caveats about the achievability of the results given the nature of
assumptions and inherent limitations in the forecasting process.

 Reporting accountant’s signature and address.

 Date of the report.

Illustrations and further practice

Now try TYU question 1 from Chapter 14

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