SAP 2 (Revised) provides guidance on the reporting auditor’s roles and responsibilities when engaged as a professional in a public offering exercise, and general principles governing engagements relating to public offering documents.
As there were divergence in practice among reporting auditors when issuing private reports on profit forecast, SAP 2 has been revised to include a new section on the guidance on what reporting auditors should comment on their private reports.
The following key enhancements have been made to SAP 2:
Updated references to the Securities and Futures (Offers of Investments) (Securities and Securities-based Derivative Contracts) Regulations 2018 (SFR 2018).
New section on private reports on profit forecast. These are meant to provide guidance on what reporting auditors should comment on their private reports.
Additional example report 6 in Appendix 1, of a private report on prospective financial information to provide illustrative guidance.