Prospective financial information relates to events and actions that have not yet occurred and may not occur. Although evidence might be available to support the assumptions underlying the prospective financial information, such evidence is usually set to the future and, therefore, of a speculative nature, very distinct from the evidence usually available in the audit of historical financial information.


An examination of prospective financial information aims to issue an opinion on whether the prospective financial information was, or not, properly prepared on the basis of stated assumptions, including a negative assurance statement on which those assumptions provide, or not, a reasonable basis for the preparation of the prospective financial information.


This type of examination is used mainly in budget analysis and prospective financial information contained in other documents (prospects e.g.), but it can be used for other purposes related to legal, statutory or regulatory requirements or under the initiative of the entities themselves.


MHSS will assess whether the client’s preparation and disclosure of prospective financial information is appropriate by performing necessary procedures to determine:

  • Whether the prospective financial information is properly prepared from management’s assumptions
  • Whether the calculation of all amounts on the prospective financial information is accurate
  • Whether the relationships among all assumptions are reasonable
  • Whether the prospective financial information is prepared on a consistent basis with historical financial statements, using appropriate accounting principles
  • Whether the presentation of the prospective financial information is in accordance with generally accepted accounting principles; and
  • Whether all assumptions have been properly disclosed

We would be delighted to discuss how we can help you, and your group or company. Please get in touch and contact MHSS at [email protected] or alternatively, contact our office directly.