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Dec 2018 Q1(d)

This topic has 3 replies, 2 voices, and was last updated 4 years ago by Kim Smith.

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August 18, 2020 at 9:05 am #581005
toushiga
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Q1(d)
Competence and resources
“We should clarify whether the bank manager expects any work to be performed and conclusion drawn on the cash flow and profit forecast”
Does it mean the other engagement involved for PFI? Or part of the audit / review engagement?
August 18, 2020 at 12:36 pm #581037
Kim Smith
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If required, this would be in addition to an audit or limited review of financial statements.
August 18, 2020 at 12:46 pm #581039
toushiga
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So will it require separate engagement letter to be sent out for the additional work on the cash flow and profit forecast?
August 18, 2020 at 1:12 pm #581040
Kim Smith
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Yes – also consider that an audit/limited review engagement would (most likely) be recurring – so it would not have to be reissued every year – whereas anything like DD/PFI is a one-off.
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