AAAP7 INT
Syllabus F. Other Assignments F5. Reporting on other assignments

F5b. Report of prospective financial information 2 / 3

Syllabus F5b)

Discuss the content of a report for an examination of prospective financial information.

A PFI report will include:

The following:

  1. Title, date & address

  2. Reference to standards or laws

  3. Basis of opinion

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

  4. Identification of the PFI contents

  5. Statement of management’s responsibility for preparation of the PFI

  6. Reference to the purpose and distribution of the report

    The PFI is based on hypothetical assumptions, the events and figures contained in the PFI may not necessarily occur as expected.

  7. Expression of assurance (negative)

  8. Appropriate caveats (on achievability of results)

  9. Accountants name etc

Such a report would:

  • State if anything has come to the auditor's attention to believe that the assumptions do not provide a reasonable basis for the PFI

  • Give opinion that it's prepared on the basis of the assumptions and is presented in accordance with the relevant financial reporting framework

  • State that actual results are likely to be different from the PFI & and the variation could be material

  • in the case of a projection, state that there are hypothetical assumptions about future events and management's actions that are not necessarily expected to occur