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Sir, for due diligence topic, in the bpp textbook, the due diligence can be conducted accordance with ISAE 3000, ISRE 2400 and ISRS 4400.
ISAE 3000 is Assurance engagement other than audit/review of historical financial information and ISRE 2400 is Engagement to Review Historical FS
Is it mean that due diligence review usually carried out based on ISAE 3000 and ISRE 2400 at the same time as its usually involved review historical FS and also prospective financial information such as forecast?
Thank you.
In our notes – Chapter 29 – you will see that we also describe “due diligence” as a review engagement (i.e. ISRE 2400 could apply if carried out by a practitioner who is not the auditor – but if carried out by the auditor, ISAE 3000 applies) or agreed-upon-procedures (ISRS 4400). So what you say is in the BPP text seems to be entirely consistent with this.
PFI would be ISAE 3400 (see Chapter 27).
Given that the syllabus separates DD and PFI as “specific assignments”, I don’t think they are going to be “muddled” in one scenario. Of course, in the real world, a DD assignment could incorporate PFI (why not?) Perhaps it would be helpful to think of the standards in this way … an audit, is an audit, is an audit – so the ISAs have universal application to audits. But every DD assignment will be different – therefore the professional accountant will apply procedures that are most appropriate in the circumstances (and these may be drawn from other pronouncements).
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