Part (a): Matters to Consider Before Accepting the Engagement

ISQC 1 (Quality Control):

1. Ethical Considerations:
   • Evaluate compliance with fundamental principles, including integrity, objectivity, and independence.
   • Ensure there are no conflicts of interest between Dogba & Associates and Edith Enterprises.
2. Firm’s Competence and Resources:
   • Assess whether the firm has sufficient knowledge and experience with engagements involving prospective financial information (PFI).
   • Confirm the availability of appropriate personnel with expertise in financial modeling and reporting.
3. Engagement Acceptance:
   • Consider the firm’s ability to meet ethical and professional standards.
   • Review whether the engagement poses any risks that could undermine the firm’s reputation.

ISAE 3400 (Examination of Prospective Financial Information):
4. Nature of the Information:

• Determine whether the prospective financial information is appropriate and prepared in compliance with applicable financial reporting frameworks.

5. Purpose of the Engagement:
   • Understand the purpose of the PFI and the intended users to ensure the engagement scope is suitable for their needs.
6. Management’s Assumptions:
   • Assess the reasonableness and basis of key assumptions underlying the PFI. Ensure they are consistent and realistic.
7. Terms of Engagement:
   • Agree on the terms of the engagement, including scope, responsibilities, deliverables, and limitations.

Part (b): Recommended Examination Procedures

1. Understand the Business and Industry:
   • Review Edith Enterprises’ industry trends, market conditions, and strategic plans to ensure the assumptions are realistic.
2. Assess Assumptions:
   • Evaluate whether management’s assumptions are reasonable, supportable, and consistent with historical data and external factors.
3. Historical Analysis:
   • Compare the prospective financial information with historical financial performance to assess consistency and reasonableness.
4. Review Supporting Data:
   • Verify source data and the calculations supporting the PFI to ensure they are accurate and complete.
5. Stress Testing and Sensitivity Analysis:
   • Test the PFI under different scenarios to evaluate the sensitivity of assumptions to changes in key variables.
6. Evaluate the Model:
   • Assess the financial model’s integrity, logic, and consistency with applicable accounting standards.
7. External Validation:
   • Obtain corroborative evidence from external sources, such as market trends and analyst reports, to validate assumptions.
8. Management Representations:
   • Obtain written representations from management regarding the completeness and reasonableness of assumptions and disclosures.
9. Disclosures:
   • Ensure that the PFI includes adequate disclosures of assumptions, limitations, and the nature of uncertainty involved.

Part (c): Extract of Unmodified Report

Independent Assurance Report on Prospective Financial Information

To the Board of Directors of Edith Enterprises Nigeria Limited

We have examined the accompanying prospective financial information (the “PFI”) of Edith Enterprises Nigeria Limited, comprising the projected profit or loss for the year ending December 31, [Year].

Management’s Responsibility:
The management of Edith Enterprises Nigeria Limited is responsible for the preparation and presentation of the PFI, including the assumptions upon which it is based, in accordance with [applicable framework].

Our Responsibility:
Our responsibility is to provide an opinion, based on our examination, as to whether the PFI is properly prepared based on the stated assumptions and is presented in accordance with [applicable framework].

Conclusion:
Based on our examination, in our opinion:

• The accompanying PFI has been properly compiled on the basis of the stated assumptions; and
• The assumptions provide a reasonable basis for the preparation of the PFI in accordance with [applicable framework].

Limitations on Use:
This report is intended solely for the use of Edith Enterprises Nigeria Limited and its intended users and should not be relied upon by other parties without our consent.

[Signature of Auditor]
Dogba & Associates
[Date]