This ASAE deals with the responsibilities of the assurance practitioner when undertaking an engagement to report on the responsible party’s preparation of financial information related to a corporate fundraising, or if the financial information is prospective, if it is prepared for another purpose.  It applies to an assurance engagement to provide either a reasonable assurance or limited assurance report, or a combination report, on that financial information.

In some circumstances, the assurance practitioner may also have separately agreed to provide other assurance or non‑assurance services related to the corporate fundraising.  Such services are outside the scope of this ASAE. (Ref: Para A1‑A2)

Types of Financial Information Covered

The types of financial information covered by this ASAE are historical financial information, pro forma historical financial information and prospective financial information (including a forecast, projection, or a pro forma forecast) prepared in respect of a corporate fundraising, or additionally if the financial information is prospective, if it is prepared for another purpose.  The financial information may be in respect of one entity or multiple entities (for example, in the case of a merger or acquisition).

It is acknowledged that assurance engagements covered by this ASAE often involve the assurance practitioner providing assurance, and reporting, on more than one type of financial information.  In such circumstances, the assurance practitioner conducts the engagement in accordance with the applicable requirements and related application and other explanatory material in the appropriate section of the ASAE, and reports the assurance conclusion for each type of financial information either in individual assurance reports (by type), or a composite assurance report (all types).  Appendix 3 contains illustrative examples of composite assurance reports.

Using this ASAE

Paragraphs 16 to 92 inclusive of this ASAE set out core requirements, and paragraphs A4 to A71 inclusive set out the core related application and other explanatory material applicable to assurance engagements to report on the responsible party’s preparation of financial information in respect of a corporate fundraising, or prospective financial information prepared for another purpose.  Requirements and related application and other explanatory material setting out the additional special considerations applicable to each of the different types of financial information covered by this ASAE are to be read in conjunction with the core requirements and related applications and other explanatory material, and are as follows:

1. Historical financial information - refer requirements contained in paragraphs 93 to 95 inclusive and related application and other explanatory material contained in paragraphs A72 to A74 inclusive.
2. Pro forma historical financial information - refer requirements contained in paragraphs 96 to 104 inclusive and related application and other explanatory material contained in paragraphs A75 to A84 inclusive.
3. Prospective financial information - refer requirements contained in paragraphs 105 to 118 inclusive and related application and other explanatory material contained in paragraphs A85 to A95 inclusive.
4. Projection – refer requirements contained in paragraphs 120 to 127 inclusive and related application and other explanatory material contained in paragraphs A96 to A98 inclusive.
5. Pro forma forecast - refer requirements contained in paragraphs 128 to 136 inclusive and related application and other explanatory material contained in paragraphs A99 to A106 inclusive.

Types of Assurance provided in the Engagement

In this ASAE, the following types of assurance are permitted on the different types of financial information:

1. Historical financial information – limited or reasonable assurance.
2. Pro forma historical financial information – limited or reasonable assurance.
3. Prospective financial information (element 1 – assumptions) – limited assurance.
4. Prospective financial information (element 2 – basis of preparation) – limited or reasonable assurance.
5. Prospective financial information (element 1 – overall) – limited assurance.

The assurance practitioner may be requested to provide assurance on a single type of financial information (for example, a forecast), or multiple types of financial information (for example, a pro forma forecast and historical financial information).  The assurance practitioner may be requested to provide limited or reasonable assurance on the financial information, or if the financial information is prospective, a mixture of limited and reasonable assurance on its different elements.   

1. An example of a limited assurance engagement involving a single type of financial information is a review of historical financial information. 
2. An example of a limited assurance engagement that involves providing assurance on multiple types of financial information is a review of historical financial information and pro forma historical financial information.
3. An example of an assurance engagement involving a single type of financial information in which there are elements of the assurance conclusion which will be on a reasonable assurance basis and other elements will be on a limited assurance basis involves a forecast. 
4. An example of an assurance engagement that involves providing assurance on multiple types of financial information involves a review of historical financial information (limited assurance) and a pro forma forecast where there are elements of the assurance conclusion which will be on a reasonable assurance basis and other elements which will be on a limited assurance basis. 

The assurance practitioner exercises professional judgement^[1] in determining the type of assurance that is appropriate to the type of financial information and possible in the individual engagement circumstances. (Ref: Para. A3)

In both reasonable and limited assurance engagements on financial information the assurance practitioner chooses a combination of assurance procedures which can include: inspection; observation; confirmation; recalculation; re‑performance; analytical procedures; and enquiry.  Determining the nature, timing and extent of assurance procedures to be performed on a particular engagement is a matter of professional judgement, taking into account the engagement circumstances (including the type of assurance to be provided), and consequently is likely to vary considerably from engagement to engagement.

Applying Requirements in this ASAE

In this ASAE, unless otherwise stated, the requirements are based on the engagement being to express limited assurance on the financial information.  Because the level of assurance obtained in a limited assurance engagement is lower than in a reasonable assurance engagement, the procedures the assurance practitioner performs in a limited assurance engagement will vary in nature from, and are less in extent than for, a reasonable assurance engagement.^[2]  A reference in the requirements to “if applicable, in a reasonable assurance engagement” is taken to mean that these requirements are to be performed in a reasonable assurance engagement either:

1. in addition to the limited assurance requirements within the same paragraph reference; or
2. performed on a standalone basis, as a minimum requirement,

depending on the engagement circumstances. 

Relationship with Other AUASB Standards

Assurance engagements other than audits or reviews of historical financial information are conducted in accordance with ASAE 3000 Assurance Engagements Other than Audits or Reviews of Historical Financial Information.  Assurance engagements that are reviews of historical financial information are conducted in accordance with ASRE 2405 Review of Historical Financial Information Other than a Financial Report.  Both ASRE 2405 and ASAE 3000 include requirements in relation to such topics as engagement acceptance, planning, performance, evidence, and documentation that apply to all assurance engagements, including those conducted in accordance with this ASAE.  This ASAE deals with specific considerations in the application of ASRE 2405 and/or ASAE 3000 to assurance engagements relating to reporting on financial information related to corporate fundraisings and/or reporting on prospective financial information for other purposes.  The Framework for Assurance Engagements, which defines and describes the elements and objectives of an assurance engagement, provides context for understanding this ASAE, ASRE 2405 and ASAE 3000. 

This ASAE does not override the requirements of ASRE 2405 or ASAE 3000 which may apply in the engagement circumstances.  It does not purport to deal with all engagement circumstances.