Other Assurance Assignments

SECTION B: ADVISORY REPORT You are a manager in the advisory department of a large accounting firm. Your firm has been approached by the VitaNova Foundation, a large global healthcare non-governmental organization (NGO). VitaNova is not currently an audit client of your firm. VitaNova is applying for a $50 million grant from the World Health Organization (WHO) to build and operate a network of mobile vaccination clinics across Sub-Saharan Africa over the next three years. As part of the grant application, the WHO requires an independent assurance report on the Prospective Financial Information (PFI) prepared by VitaNova. The PFI includes detailed forecasts of capital expenditure, operational running costs, and projected patient reach. Furthermore, to execute the logistics of this project, VitaNova is planning to partner with 'MediDeliver', a local medical logistics company based in the region. VitaNova's board has asked your firm to conduct a brief due diligence review on MediDeliver before they sign a binding partnership agreement. Requirements: (a) Identify and explain the matters your firm should consider before accepting the engagement to report on the Prospective Financial Information (PFI). (8 marks) (b) Describe the examination procedures you would perform on the Prospective Financial Information (PFI) regarding the forecasted capital and operational expenditures. (10 marks) (c) Recommend specific financial and operational due diligence procedures your firm should perform regarding the proposed partnership with MediDeliver. (7 marks)