Page 214 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
• Statement of negative assurance as to whether the assumptions provide a reasonable basis for the prospective
financial information
Preparation based on assumptions:
• Opinion as to whether the prospective financial information is properly prepared on the basis of the
assumptions and is presented in accordance with the relevant financial reporting framework
Caveats:
• Appropriate caveats concerning the achievability of the results indicated by the prospective financial
information
Report's Date:
• Date of the report, aligning with the completion date of the procedures
Signature Location:
• Place of signature
Such a report would: -
(Shortcut: Parul VORA made report)
Projection's Intended Use:
• In a projection scenario, the prospective financial data is structured for a specified use, leveraging a series of
assumptions. These may encompass hypothetical forecasts about imminent events and managerial actions not
necessarily predicted to transpire. Hence, users are advised that the prospective financial data ought not to be
employed for purposes outside the specified use.
Variation in Actual Results:
• State that actual results might diverge from the prospective financial information since forecasted events often
don't pan out as anticipated. The disparity can be substantial.
Opinion Expression:
• Express an opinion regarding the correctness of the prospective financial data's preparation in line with the
assumptions and its presentation following the relevant financial reporting norms.
Range Uncertainty:
• When the prospective financial information is represented as a range, affirm that there's no guarantee that
actual outcomes will align within this range.
Unreasonable Assumptions:
• State whether, grounded in the evaluation of evidence supporting the assumptions, anything has emerged
which leads to the belief that the assumptions might not lay a reasonable foundation for the prospective financial
data.

Modified Opinion.
Scope Limitation:
• When the examination is impacted by conditions restricting the application of essential procedures, a
withdrawal from the engagement or a disclaimer of opinion should be considered, outlining the scope limitation
in the report.
Unreasonable Basis for Assumptions:
• If one or more significant assumptions don't provide a reasonable basis for the prospective financial
information based on best-estimate or hypothetical assumptions, an adverse opinion detailing the reasons should
be expressed, or engagement withdrawal is warranted.
Inadequate Presentation and Disclosure:
• When it is believed that the presentation and disclosure of the prospective financial information is not
adequate, a qualified or adverse opinion in the report should be expressed or withdrawal from engagement
should be considered.
• An example is when financial information fails to adequately disclose the consequences of assumptions that
are highly sensitive.

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