Scope of application

01. This Standard specifies and guides the responsibility of the auditor and the firm (hereinafter referred to as "the auditor") for performance of contracts for testing and reporting on future financial information, including procedures for testing hypothetical assumptions and best estimate assumptions. This standard Does not apply to the examination of future financial information expressed in generalized or interpretive terms, such as management's performance analysis in the entity's annual report.Although many of the procedures set forth in this Standard may be appropriate for examining such future financial information. 

Target

02. In performing a prospective financial check service contract, the auditor and the firm shall obtain sufficient appropriate evidence that:

(a) Whether the assumptions of best estimate used by management as the basis for future financial information are not unreasonable and if hypothetical assumptions are used. Is it consistent with the information provided?

(b) Whether future financial information has been appropriately prepared based on assumptions;

(c) Whether future financial information is appropriately presented and all material assumptions are fully disclosed, including whether they are estimates of estimates. best or hypothetical assumptions; 

(d) Whether future financial information has been prepared on a basis that is consistent with historical financial information and by the application of appropriate accounting policies.

Responsibilities of auditors, auditing firms and audited entities

03. The auditor and the firm shall comply with the provisions and instructions of this Standard in agreeing to and performing the engagement with respect to testing of future financial information. 

The inspected entity (customer) shall have the necessary knowledge of the requirements and requirements of this International Standard to coordinate the work and to deal with the relationships related to the agreement and compliance process. Co-service for checking future financial information. 

04. Parties using test results should have the necessary understanding of the requirements and guidelines of this Standard in order to properly use test results.

Standard content

- Purpose of preparing future financial information

- Auditor's assurance level about future financial information

- Accept service contract

- Understanding of business activities

- Reporting period

- Inspection procedures

Presentations and explanations

- Inspection report on future financial information inspection

- The appendices

Full text view Standard No. 3400