Skip to content

ACCA Strategic Professional · Advanced Audit and Assurance (International) · Audit-related and assurance services

Which element must be included in a practitioner's report on prospective financial information under ISAE 3400?

The report must include a caution that actual results are likely to differ from the prospective information because anticipated events frequently do not occur as expected, and the differences may be material. The practitioner cannot give assurance on achievement of the forecast.

  1. AA statement that actual results are expected to equal the prospective information
  2. BA caution that actual results are likely to differ from the prospective information, as anticipated events frequently do not occur as expectedCorrect
  3. CAn opinion on the going concern basis of historical statements
  4. DA guarantee of the entity's future profitability

Explanation

ISAE 3400 requires the report to include appropriate caveats about the achievability of the results, stating that actual results are likely to differ because events often do not occur as expected, and the difference may be material. The other options give assurance that the practitioner cannot provide.

Did you get it right without looking?

One question tells you little. A timed set on Audit-related and assurance services shows your real accuracy, how long you take and where you lose marks.

Practise Audit-related and assurance servicesFree diagnostic mock

More Audit-related and assurance services questions