Procedures on forecast financial information

Up to 1 mark for each procedure (brief examples below):

– General procedures examples:
o Re-perform calculations
o Consistency of accounting policies used
o Discuss how joint venture has been included
o General analytical procedures
– Procedures on income statement:
o Discuss trends – allow up to 3 marks for calculations performed and linked to procedures
o Review and compare breakdown of costs
o Recalculate profit on disposal, agreement of components to supporting documentation
– Procedures on statement of financial position:
o Agree increase in property, plant and equipment to capital expenditure budget
o Discuss working capital trends – allow 2 marks for calculations performed and linked to procedures
o Agree movement in long-term borrowings to new loan documentation
o Obtain and review forecast statement of changes in equity and confirm validity of reconciling items

Maximum marks 13