Key Topics: Acceptance procedures, capital expenditure forecast.

Description: This requirement requires you to consider some forward looking forecast information in respect of a capital expenditure forecast. You should think about the acceptance procedures required, giving consideration to ethical, professional and practical issues. The requirement also wants you to design some tests (assuming the non-audit work gets accepted) in respect of the forecast. You should consider the underlying assumptions and whether or not they are realistic as well as what type of evidence you would request from the client.