An opinion with a visible foundation.
An expert report should help its reader understand a financial issue, the information considered and the reasoning behind an opinion. The instructions determine the questions to address; the evidence determines what can reasonably be concluded.
The form and requirements of an assignment need to be established at the outset. Relevant experience, independence and any applicable reporting obligations must be confirmed before an engagement is accepted.
Questions this analysis can address
What financial questions require an expert opinion?
Which assumptions are material to that opinion?
How can the reasoning be presented clearly?
Scope may include
Review of instructions
Translate the financial issue into clear questions and identify the limits of the instructions.
Assessment of evidence
Review the quality, relevance and completeness of the material available.
Documented assumptions
Separate factual inputs from judgements and explain why material assumptions were selected.
Clear expert reporting
Present methods, calculations, conclusions and limitations in a form the intended reader can follow.
How the analysis develops
The analysis should address each instructed question and maintain a traceable connection to the underlying material. Where approaches or assumptions could lead to different results, those differences should be considered and explained.
A well-structured report makes it possible to examine the reasoning without relying on the authority of its conclusion alone. Additional requirements depend on the actual assignment and must be agreed.
Before an engagement
Can a report be prepared to support a preferred conclusion?
An independent opinion follows the information and analysis. The purpose of the engagement is to address the agreed questions, with material uncertainties and limitations made clear.
How is the scope established?
The initial discussion defines the question, the records available and the intended use of the analysis. Suitability, independence, responsibilities, fees and deliverables are agreed before work begins.
What should I send first?
Begin with a short description of the background, the question and any relevant dates. Arrangements for sharing confidential source records should be agreed separately.