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