The Statement of Auditing Practice (SAP) 2 (Revised) Auditors and Public Offering Documents provides guidance on the auditor’s roles and responsibilities when engaged as a professional in a public offering exercise, and general principles governing public offering documents. 

The key additions within this ED are the inclusion of a new segment on “Private Reports on Profit Forecasts” and the new illustrative reporting auditor’s private report on prospective financial information under Example 6 of Appendix 1. Private reports on profit forecasts are reports that are not prepared for inclusion in a prospectus. 

A summary of the key additions are as follows:

  • Paragraphs 29 to 30 - Clarifications on the requirements of the Securities and Futures (Offers of Investments) (Shares and Debentures) Regulations 2005 (SFR) where a profit forecast is included in a public offering document (i.e. public reports on profit forecast);
  • Paragraphs 34 to 42 - New section on private reports on profit forecasts;
  • Additional illustrative example report on a private report on prospective financial information (Appendix 1 Example 6).

ISCA requires all comments to be submitted to by 19 October 2018.

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