2.19 The assessment of the systems and processes in place to provide sufficient documentary evidence over prospective information within the PDSSs has again resulted in this area of the PDSSs not being included within the scope of the review. Statements about the future, by their very nature, involve uncertainty and rely on circumstances that may or may not occur. From an assurance review perspective, the risk of misstatement about future occurrences is higher than the risk of a misstatement about an event that has occurred and where sufficient documentary evidence can be provided. Generally, the longer the timeframe involved in the forecast the more uncertain are the underpinning assumptions, and the greater the risk of material misstatement.
2.20 Some information in the DMO's PDSSs contains forecasts for achieving project milestones (for example, FOC) and expected developments which may impact on the project (for example, technology development). Presently, this information draws on a large range of DMO and contractor systems and processes, with varying levels of internal control.