Circular 2013/2 – ISAE 3420

ALL PRACTICING MEMBERS OF THE INSTITUTE

Dear Member

ADOPTION OF ISAE 3420 ‘ASSURANCE ENGAGEMENTS TO REPORT ON THE COMPILATION OF PRO FORMA FINANCIAL INFORMATION INCLUDED IN A PROSPECTUS’

The Council of the Institute has approved the adoption of International Standard on Assurance Engagements (ISAE) 3420 ‘Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus’in its 241st meeting held on December 07, 2012.

The requirements of ISAE 3420 are distinct from the requirements of section 53 of the Companies Ordinance 1984.

Guidance note on ISAE 3420 is enclosed for member’s reference. The ISAE 3420 is also available in the ‘Handbook of International Quality Control, Auditing Review, Other Assurance, and Related Services Pronouncements’ published by the Institute. The document can also be downloaded from ICAP website.

Members are advised to take note of the above.