What must be reported by auditors and financial advisors in the defence document?

The requirement for auditors and financial advisors to report a profit forecast in the defense document is critical because it provides potential investors and stakeholders with insight into the anticipated financial performance of the company. A profit forecast helps to establish expectations regarding the future profitability and viability of the business, which is especially important during transactions like mergers, acquisitions, or when facing a takeover bid.

Including a profit forecast gives a comprehensive view of the company's future growth potential and financial health, allowing stakeholders to make more informed decisions. It directly addresses the concerns of investors about whether the company can sustain its operations and generate returns on their investments. Furthermore, a profit forecast serves as a benchmark against which future performance can be measured, adding a layer of transparency and accountability to the firm’s financial projections.

In contrast, while shareholder feedback, market trends, and investment risks may offer valuable information, they do not have the same overarching importance as a profit forecast in the context of the defense document. Shareholder feedback reflects sentiment but may not provide concrete financial data; market trends can influence the forecast but do not constitute a projection of the company’s own performance; and investment risks outline potential challenges without giving a definitive outlook. Therefore, the emphasis on reporting a profit forecast is to ensure that the document provides a forward