14 Prospective Financial Information .pdf - PROSPECTIVE...

PROSPECTIVE
FINANCIAL
INFORMATION
+

Prospectiuefinancialiryormation authorizedbyseniormano.ge#4sTypes0fAssumptions-
-
Prospective
means
future and therefore
Prospective
-
In
addition to
these
overall procedures
,
auditor
will
also
Underlying
assumptions
need to
be
considered
financial
information
means
future financial information
perform procedures specific
to forecasted data
.
that
whether
they
are
hypothetical 012 Best Estimates
It
includes financial forecasts
prepared by
a
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-
Review
assumption taken by
management
of
growth
-
Hypothetical
assumptions
are
Baseless assumptions
company
.
in sales
and
compare
it with past trend
and -Bestestimatesarebasedontre#
-
financial
forecast
made
for
Bank loan
industry
information
sisourceojbata
-
Investment
Appraisal reports
-
Review
breakup of
cost of sales
and
operating
-
from
where
the management
got data to
use
-
Financial
forecast made for
prospectus at
expenses
and
compare
it
with past to
verify
in
assumptions
time
of share
issue
that
all heads
are
included
in
it
-
whether those
sources
of
assumptions
9
data
are
-
financial
forecast made for
going
concern
-
Review
staff
contracts
of
existing
employees
to
reliable
view
verify their salaries
included
in
forecast
ewhethermostrecentfsisauditedo.IN#
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-
Review
correspondence
with
vendor
to
verify
GC-thicalis.su
-
PFI
is prepared by
management
,
and auditor
expected
completion date
of
expansion
-
IF
client
is
also
an
audit client
then Ethical
is
asked
to
give
assurance on
it
Review
opening
balance
used in cashflow
issues
may
arise
Auditor
gives
limited
assurance
on
PFI
as
forecast and verify it
from Bank
statement
9
-
Use
of safeguard
will
be
required
,
such as
PFI
is
data related
to
future which
is
uncertain
cash
book
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-
Recalculate
PFI to
verify
accuracy
assurance
provider
Management
-
Review
accounting
policies
used
in
PFI
and
-
Greater
the
use
of
forecast
is
G
greater
will
be
-
Report
is
addressed to specific
user
,
so
that
verify
that they
are
consistent
with
normal
thereliance.am#auditordonotremainsliabletoanyotheruI
accounting
policies of company
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-
Review
that who prepared PFI
Whether he is
-
what
will be
included
in
forecast
on
which
-
Contents
of
forecast
on
which assurance
is being
competent
enough
to
make forecast whether his
assurance is
required
It
will
affect level
of given
past forecast have been accurate OE not
work
eperiodofforeeastwhichiscoveredlinassuraf-Reui.eu
underlying assumptions
of
forecast
and
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verify
that they
are
consistent
with auditor
's
rsstenureogforecast
-
Accounting
which
was
used
in
forecast
understanding
of
business and its environment
-
Greater the
tenure
of
forecast
is
and greater
data
⊥
IAS
,
IFRS
,
GAAP
,
FRS
-
Review
that
whether
proper systems
and controls will be the assumptions
-
Auditing
which
is
used while
expressing
were
followed
while
preparation
ogjorecast
whether
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assurance
⊥
ISRE
(
International
standards
on
it
was
properly supervised
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whether
it
is
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