Prospective financial information relates to events and actions that have not yet occurred and may not occur. Although evidence might be available to support the assumptions underlying the prospective financial information, such evidence are usually set to the future and, therefore, of a speculative nature, very distinct from the evidence usually available in the audit of historical financial information.
An examination of prospective financial information aims to issue an opinion on whether the prospective financial information was, or not, properly prepared on the basis of stated assumptions, including a negative assurance statement on which those assumptions provide, or not, a reasonable basis for the preparation of the prospective financial information.
This type of examination is used mainly in budget analysis and prospective financial information contained in other documents (prospects e.g.), but it can be used for other purposes related to legal, statutory or regulatory requirements or under the initiative of the entities themselves.