Real Estate Investment Funds: Financial reporting - Alfi
Real Estate Investment Funds: Financial reporting - Alfi
Real Estate Investment Funds: Financial reporting - Alfi
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In general, auditors will have to perform more work with respect to the uncertain<br />
elements of the FOREF <strong>reporting</strong> as described above, such as the valuation of<br />
underlying investments into "investee" funds and the "going concern" assumption.<br />
Auditors will have to review and assess the appropriateness of the assumptions<br />
made by management and the reliability of the supporting documentation gathered<br />
to support their conclusions.<br />
1. Additional<br />
information requests<br />
a. Auditors may also require additional<br />
information to be able to assess the "going<br />
concern" assumption such as:<br />
Additional representations from the<br />
management of the FOREF;<br />
Cash flow forecasts to evidence that the<br />
FOREF has a sufficient level of cash to sustain<br />
its activities with sensitivity analyses in<br />
connection with the market uncertainty.<br />
2. Modifications to<br />
audit reports<br />
a. Auditors may also consider modifications to<br />
their audit report in certain circumstances<br />
including where, in their judgment:<br />
Assumptions and judgments made by<br />
management in valuing the "investee" funds<br />
are inaccurate or inappropriate;<br />
Insufficient evidence exists, or has been<br />
considered, to reasonably value the "investee<br />
investments";<br />
Disclosures with respect to the uncertainty of the<br />
valuation of "investee" funds are inadequate;<br />
There is doubt as to the "going concern"<br />
status of the FOREF;<br />
Disclosures with respect to the "going<br />
concern" status of the FOREF are inadequate;<br />
Assumptions and judgments made by<br />
management in respect of the "going<br />
concern" status of the FOREF are<br />
inaccurate or inappropriate.<br />
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