Real Estate Investment Funds: Financial reporting - Alfi

In general, auditors will have to perform more work with respect to the uncertain
elements of the FOREF reporting 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.
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