Scope of application

01. This International Standard specifies and guides the responsibility of the auditor and the firm (hereinafter referred to as an “auditor”) for performing an engagement with reasonable certifications for reporting purposes. report on the pro forma financial information consolidation in the responsible party's prospectus (See paragraph 12 (v) of Vietnamese Standard on Security engagements 3000 - Out of audit and review of historical financial information, explaining the term “party responsible"). This Standard is applicable to:

(1) Report on the synthesis of financial information in the prospectus in accordance with the securities laws or relevant laws and regulations; or

(2) Report on aggregation of other financial information in accordance with the law (See paragraph A1 for guidance on this Standard). 

Responsibilities of auditors and auditing firms

02. In an engagement covered by this Standard, the auditor and the firm are not responsible for compiling the pro forma financial information for the entity; That responsibility belongs to the responsible party. It is the sole responsibility of the auditor and the firm to report whether the responsible party has compiled the pro forma financial information, in all material respects, on the basis of the applicable criteria. used or not.

03. This Standard does not apply to unsecured engagements in which the auditor and the firm are hired to compile the entity's financial statements.

Purpose of pro forma financial information in the prospectus

04. The purpose of the pro forma financial information in a prospectus is to illustrate the effect of the material event or transaction on the entity's unadjusted financial information if the event is assumed or A transaction that was made at an earlier date is selected for illustration purposes. This is achieved by recording pro forma adjustments to the unadjusted financial information. Consequently, the pro forma financial information does not represent the entity's financial position, business results, or actual cash flows.See paragraphs A2 - A3 for guidance in this Standard).

Synthesize pro forma financial information

05. Pro forma financial information aggregation means that the responsible party collects, classifies, aggregates and presents financial information to illustrate the impact of material events or transactions on financial information. The entity's unadjusted primary assumption has occurred or the transaction was made at the time of selection. This procedure includes the following steps:

(1) Identify the source from which unadjusted financial information is extracted used to compile the pro forma financial information, and how the unadjusted financial information is extracted from that source (See paragraphs A4 - A5 for guidance in this Standard);

Recognition of the pro forma adjustments to the unadjusted financial information for the pro forma financial presentation purpose;

(3) Presentation of the results of the pro forma financial information and accompanying disclosures.

The nature of the service contract is reasonable

06. Contract of reasonable assurance to report on the pro forma consolidation of financial information including the performance of procedures specified in this Standard to evaluate whether the criteria are subject to the responsible party. Does the mandate apply in compiling the pro forma financial information to provide a reasonable basis for the presentation of significant direct effects of the event or transaction, and to obtain sufficient appropriate evidence. (Ref: Para. A6)

(1) Whether the relevant pro forma adjustments reflect the appropriate effect on those criteria;

(2) The “Pro forma Result” column (see Paragraph 11 (c)) reflects the correct application of such adjustments to the unadjusted financial information.

This engagement also includes evaluating the overall presentation of the pro forma financial information. However, this engagement does not include the firm's amendments, additions, or reissues of statements or opinions on any historical financial information used in the aggregation of financial information. The pro forma key, or performs audit procedures or reviews the financial information used in compiling the pro forma financial information.

Relationship with Vietnamese Standards on Guarantee Service Contract No. 3000, with other standards and requirements

07. The auditor must comply with Vietnamese Standards on security services contract No. 3000 - Security service contract other than auditing and reviewing historical financial information (hereinafter referred to as " Vietnamese Standard on Security Service Contracts No. 3000 "or" Standard No. 3000 ") and this Standard when performing reasonable assurance engagements for reporting purposes on aggregation of financial information according to the convention in the prospectus. This Standard complements, but does not supersede, Standard 3000, and provides guidance on how to apply Standard 3000 to reasonable attestation service contracts for reporting purposes on the synthesis of information. Pro forma finance in the prospectus.

08. In addition to the other requirements of VAS 3000, the auditor is required to comply with the requirements in Part A and Part B of ethical professional standards of accounting and auditing related to the engagement of assurance. , or other professional requirements, or requirements of applicable laws and regulations that are at least equivalent to the requirements of professional ethics standards for accounting and auditing (See paragraphs 3 (a), 20 and 34 of Standard 3000). This International Standard also requires that the member of the Board of Directors in charge of overall engagement should be an employee of the firm and are subject to Quality Control Standard 1 - Corporate Quality Control performing the control accounting, review of financial statements, assurance and other related services (hereinafter referred to as "Quality Control Standard 1"), or other professional requirements, or requirements applicable laws and regulations relating to the firm's liability for a quality control system that is at least equivalent to Quality Control Standard 1 (See paragraphs 3 (b) and 31 (a) VAS 3000). 

09. The auditor and the firm shall comply with the provisions and instructions of this Standard in agreeing to and performing the engagement warrant of the pro forma financial information reported in the report. prospectus.

The assurance provider (the customer) and the reporting parties that compile the pro forma financial information in the prospectus are required to have the necessary understanding of the requirements and guidelines of this Standard. This is for coordinating work and handling relationships related to the engagement process and performance of assurance contracts for reporting pro forma financial information in the prospectus and using it correctly. result.

Target

10. Objectives of auditors and auditing firms are:

(a) Obtain reasonable assurance that the pro forma financial information has been compiled by the responsible party, in all material respects, on the basis of the applicable criteria;

(b) The report is consistent with the auditor's findings.

Standard content

- Relationship with Vietnam Standards on guaranteed service contract No. 3000

- Accept service contract

- Planning and implementing service contracts

- Written explanations

- Forming comments

- Type of opinion

- Service report to ensure the general report of financial information according to the convention in the prospectus

- Appendix

Full text view Standard No. 3420