Real Estate Investment Funds: Financial reporting - Alfi

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how may this impact the audit of FOF financial statements? chapter XI
In general, auditors will have to perform more work with respect to the uncertain elements of the FOREF <strong>reporting</strong> as described above, such as the valuation of underlying investments into "investee" funds and the "going concern" assumption. Auditors will have to review and assess the appropriateness of the assumptions made by management and the reliability of the supporting documentation gathered to support their conclusions. 1. Additional information requests a. Auditors may also require additional information to be able to assess the "going concern" assumption such as: Additional representations from the management of the FOREF; Cash flow forecasts to evidence that the FOREF has a sufficient level of cash to sustain its activities with sensitivity analyses in connection with the market uncertainty. 2. Modifications to audit reports a. Auditors may also consider modifications to their audit report in certain circumstances including where, in their judgment: Assumptions and judgments made by management in valuing the "investee" funds are inaccurate or inappropriate; Insufficient evidence exists, or has been considered, to reasonably value the "investee investments"; Disclosures with respect to the uncertainty of the valuation of "investee" funds are inadequate; There is doubt as to the "going concern" status of the FOREF; Disclosures with respect to the "going concern" status of the FOREF are inadequate; Assumptions and judgments made by management in respect of the "going concern" status of the FOREF are inaccurate or inappropriate. 39
Page 1: guidelines Real Estate Investment F
Page 5 and 6: table of contents chapter I - PROPE
Page 7 and 8: property valuation chapter I
Page 9 and 10: y the seller. The assessment of the
Page 11 and 12: valuation uncertainty chapter II
Page 13 and 14: 3. How recent should a valuation be
Page 15 and 16: accounting chapter III
Page 17 and 18: discussed above in Chapter III.2.c
Page 19 and 20: understand the nature and potential
Page 21 and 22: f. INREV guidance states that in ca
Page 23 and 24: net asset value calculation chapter
Page 25 and 26: financial statements and disclosure
Page 27 and 28: 3. What are the typical contents of
Page 29 and 30: 1. What specific issues arise with
Page 31 and 32: In general, a FOREF invests in illi
Page 33 and 34: What information in respect of inve
Page 35 and 36: chapter IX how does increased valua
Page 37 and 38: chapter X what options do FOREFS ha
Page 39: 3. Continue to produce Fund NAVs/fi
Page 43 and 44: Glossary of terms 91/75 The IML Cir

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