ASSURANCE AND NON-ASSURANCE SERVICES

Procedures in Review Financial Forecasts or Projection

whether prospective financial information is properly prepared on basis of the assumptions

whether prospective financial information is prepared on basis consistent with historical financial statements using appropriate accounting standards

whether hypothetical assumptions are consistent with purpose of information

underlying data are adequate and reliable and calculation are accurate

whether best-estimate assumptions used for prepare prospective financial information are reasonablew

Elements contained in review of financial forecast and projection

reasonableness of management assumptions express in negative form

whether prospective financial information is properly prepared based on assumptions and consistent with historical financial statement express in positive form

Type of reporting in review of financial forecast and projection

Modified Opinion

Unmodified Opinion

based on examination of evidence supporting assumption

forecasts is properly prepared on basis of assumptions and presented with applicable approved accounting standards in Malaysia

when auditor believe that presentation and disclosure of prospective financial information is not adequate

express qualified or adverse opinion on prospective financial information or withdraw from the engagement

Due Diligence Audit

Defintion

require to verify state of affair of targeted business

process of enquiry and investigation made on behalf of prospective buyer on possible business merger or acquisition

conducted in prudence and accordance with generally accepted practices

Audit procedures

evaluate valuation of assets of company

carry out analytical review and discuss unusual items

review working papers of previous auditors

verify all material items in balance sheet

What is Forensic audit or investigation

require use of critical analyses and investigate skills, integrated with accounting knowledge and business experience

require personnel who are trained in detecting, investigate and deterring fraud and white collar crime

conducted to obtain or develop information as legal evidence or for use by expert witnesses in court of law

required to report to company that has appointed him in the case of regulatory body to the committee set up for that purpose

inquiry into financial affairs of a business include examination of its audited accounts for recent years and its current and estimate position, as will enable the investigating accountant to ascertain and marshal in his report the information relevant to the purpose of his enquiries and to give recommendations and conclusions based on this information

Stage of Forensic audit

obtain background information

decide the outline of audit report

assessing the aims and probable scope of investigations

fact gatheringd

communicate with auditors

rafting the audit report

instruction from client

clearing the draft report with the company with being investigated