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?
Ask the Tutor ACCA AAA
Dec 2018 Q1(d)
6y ago#1If required, this would be in addition to an audit or limited review of financial statements.
So will it require separate engagement letter to be sent out for the additional work on the cash flow and profit forecast?
6y ago#3Yes - 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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