Investment circulars get toughened audit regime

The Auditing Practices Board has published new investment reporting standards
intended to beef up the practice for auditors working on profit forecasts and
pro forma financial information.

SIR 3000 and 4000 back up the requirement to express an opinion on whether
such investment circulars have been ‘properly compiled’ on the basis stated by
the issuer. They intend to ensure that the auditor obtain sufficient appropriate
evidence that the forecast of pro forma financial information is free from
material error in its compilation. This includes obtaining evidence that the
directors have applied the criteria provided by certain regulations and

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