APES 345: Reporting on prospective financial information prepared in connection with a disclosure document

This overview is not a replacement of the Standard and therefore should be used in conjunction with, and not instead of, the Standard.


APES 345 Reporting on Prospective Financial Information Prepared in Connection with a Disclosure Document (PDF) sets out mandatory requirements and guidance for members in public practice who undertake reporting service engagements.

Scope and application

APES 345 took effect on 1 July 2009 and was revised in October 2015. The revised Standard, which is effective for Engagements commencing on or after 1 January 2016, requires members in public practice in Australia to adhere to its mandatory requirements when reporting on prospective financial information. For members outside of Australia the scope of the Standard must be followed as long as local laws and/or regulations are not contravened.

Fundamental responsibilities of members

APES 345 requires members to observe and comply with their public interest obligations when they undertake reporting service engagements. Further they must comply with Section 100 – Introduction and Fundamental Principles of APES 110: Code of Ethics for Professional Accountants (the Code) and relevant law.

APES 345 requires that members comply with their professional obligations established in accordance with the Code in respect of:

  • Section 130 – Professional Competence and Due Care
  • Section 140 – Confidentiality
  • Section 220 – Conflict of Interest
  • Section 280 – Objectivity – All Services

Professional independence

APES 345 stipulates that when a reporting service engagement requires independence, the member in public practice shall comply with independence as defined in the Standard. Where the reporting service engagement is an assurance engagement as defined under AASB Framework for Assurance Engagements, the member must comply with Section 290 Independence – Assurance Engagements of the Code.

Professional engagement and other matters

APES 345 reminds members of their professional obligations to document and communicate the terms of engagement in accordance with APES 305 Terms of Engagement. Members are also required to comply with Section 210 – Professional Appointments of the Code.

Relationships that create threats to the fundamental principles

APES 345 provides guidance in relation to the types of relationships that may create threats to the fundamental principles of the Code. Examples of such threats include but are not limited to:

  • financial interests
  • loans and guarantees
  • close business relationships with the client
  • employment relationships with the client
  • family and personal relationships.

Where threats cannot be eliminated or reduced to an acceptable level, the member must refuse to accept or continue the reporting service engagement.


APES 345 requires members in public practice to take all reasonable steps to ensure the prospective financial information does not contain false or misleading information or omit material information. Members are further obligated to take all reasonable steps to ensure the disclosure document states the basis and key assumptions underlying the prospective financial information.

Refer to the Standard for information concerning

  • Definitions
  • Public interest
  • Professional competence and due care
  • Confidentiality
  • The provision of other professional services
  • Documentation
  • Communication with those charged with governance
  • Professional fees
  • Threatened and actual litigation
  • Conformity with international pronouncements

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