AT-C 305 Prospective Financial Information

Original Pronouncement

Source Statement on Standards for Attestation Engagements (SSAE) 18.


AT-C 305's guidance applies to all examination and agreed-upon procedures engagements on prospective financial information, and supplements the guidance in Section 105. On every attestation engagement, CPAs must comply with Section 105 and one of the service sections. For Section 305, CPAs must also comply with Section 205 on examination engagements or Section 215 on agreed-upon procedure engagements. (AT-C 305.01) See the chapter on the AT-C Preface for more information about the AT-C section structure.

Prospective financial information included in this section may be prospective financial statements or partial presentations.

Except for the introduction and definitions paragraphs, the guidance in this section is divided between examination engagements and agreed-upon procedures engagements.

Definitions of Terms

See the “Definitions of Terms” section in the Appendix to the chapter on the AT-C Preface for definitions of the following terms relevant to this Section: entity, financial forecast, financial projection, Guide,1 hypothetical assumption, key factors, partial presentation, presentation guidelines, prospective financial information, and prospective financial statements.

To apply the guidance in Section 305, it is important to understand the differences between a forecast and a projection.

Financial Forecast ...

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