A5_M4: Agreed-upon procedures and prospective financial statements.

Engagement Types. A practitioner is associated with prospective financial statements primarily in one of three ways:

(1). compilation engagement. (2). examination engagement [the report is generally to be used by a third party]. (3). agreed-upon procedures engagement. Note that a review of prospective financial statement is not allowed.

Prospective Financial Statement Summary. Reports include a Statement Regarding: Limitation of scope of examination.

☐ Compilation Report: Yes. ☐ Examination Report: No. ☐ Agreed-upon procedures: Yes.

Prospective Financial Statement Summary. Reports include a Statement Regarding: Compliance with AICPA standards.

☐ Compilation Report: Yes. ☐ Examination Report:Yes. ☐ Agreed-upon procedures: Yes.

Prospective Financial Statement Summary. Reports include a Statement Regarding: identification of prospective financial statements.

☐ Compilation Report: Yes. ☐ Examination Report:Yes. ☐ Agreed-upon procedures: Yes.

Prospective Financial Statement Summary. Reports include a Statement Regarding: A caveat that prospective results may not be achieved.

☐ Compilation Report: Yes. ☐ Examination Report: Yes. ☐ Agreed-upon procedures: Yes.

The uses of prospective financial statements can be categorized as:

☐ General Use. ☐ Limited Use.

The use of prospective financial statements can be categorized as:

☐ General use. ☐ limited use.

Compilation of a Financial Projection. The standard report above would be changed slightly to include:

☐ a description of the purpose of the projection. ☐ a reference to the hypothetical assumption. ☐ a paragraph restricting the use of the report.

Pro Forma Financial Statements. ☐ pro forma adjustment should be based on management's assumptions and include all material affects directly attributable to the transaction [or event].

☐ a practitioner's report should make reference to the financial statements from which the historical financial information is derived, and state whether such financial statements were audited or reviewed.

☐ a list of the procedures performed [or reference thereto] and related findings [the practitioner should not provide an opinion or conclusion]. ☐ certain additional items for agreed-upon procedures for attestation engagements on prospective financial information.

☐ a statement of restrictions on the use of the report because it is intended to be used solely by the specified parties. ☐ where applicable, a description of the nature of the assistance provided by a specialist.

☐ a statement indicating that the prospective results may not be achieved and describing other significant inherent limitations, if any; and

☐ a statement that the practitioner assumes no responsibility to update the report due to subsequent events. for a projection, the report should also include identification of the hypothetical assumptions, a description of the projection's purpose, and a restrictive use paragraph.

the following items would appear in the practitioner's compilation report: ☐ a caveat that the prospective results may not be achieved;

☐ a statement that the practitioner assumes no responsibility to update the report for events and circumstances occurring after the date of the report; and ☐ the signature of the practitioner's firm and the date of the report.

the following items would appear in the practitioner's compilation report: ☐ identification of the prospective financial statements presented by the responsible party; ☐ a statement that management is responsible for the prospective financial statements;

☐ a statement that the practitioner has performed the compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA;

☐ an identification of the responsibility and a statement that the prospective financial statements are the responsibility of the responsible party;

☐ a statement that the practitioner's responsibility is to express an opinion on the prospective financial statements based on his or her examination.

☐ a statement that the practitioner believes that the examination provides a reasonable basis for his or her opinion; ☐ a description of the nature of an examination engagement;

☐ an opinion that the prospective financial statements are presented in conformity with AICPA guidelines and that the underlying assumptions provide a reasonable basis for the forecast or the projection given the hypothetical assumptions;

The following issues would require the practitioner to modify the opinion: ☐ AICPA presentation guidelines are not followed [qualified "except for" or adverse opinion] ☐ significant assumptions are not disclosed [adverse opinion].

☐ basis not reasonable : one or more of the significant assumptions do not provide a reasonable basis for the financial statements [adverse opinion]. ☐ Scope limitation [disclaimer].

Prospective Financial Statement Summary. General Procedures: obtained agreed-upon scope from specified users.

☐ compilation report: N/A. ☐ examination report:N/A ☐ agreed-upon procedures: Yes.

Prospective Financial Statement Summary. General Procedures: prospective financial statements.

☐ compilation report: assemble. ☐ examination report: evaluate. ☐ agreed-upon procedures: apply specific procedures.

Prospective Financial Statement Summary. General Procedures: Responsible party's assumptions.

☐ compilation report: assemble. ☐ examination report: evaluate. ☐ agreed-upon procedures: should be included in PFS.

Prospective Financial Statement Summary. General Procedures: are financial statements and significant assumptions in conformance with AICPA guidelines?

☐ compilation report: look for obvious errors. ☐ examination report: opinion. ☐ agreed-upon procedures: disclaimer.

Explanatory Language. The practitioner may include explanatory language regarding matters such as: ☐ disclosure of stipulated facts, assumptions, or interpretations [including the source thereof] used in the application of agreed-upon procedures.

☐ description of the condition of records, controls, or data to which the procedures were applied. ☐ Explanation that the practitioner has no responsibility to update his or her report. ☐ Explanation of sampling risk.

The purpose of an examination of prospective financial statements is to express an opinion as to whether:

(1). the statements are presented in conformity with AICPA guidelines; and (2). the underlying assumptions provide a reasonable basis for the prospective statements.

Financial Projection. A financial projection is different from a forecast in that it is based on hypothetical assumptions.

A projection reflects the financial position and results of operations based on a "what-if" type of scenario.

Partial Presentations.(2)

Because partial presentations are generally appropriate only for limited use, reports on partial presentations of both forecasted and projected information should include a description of any limitations on the usefulness of the presentation.

XYZ Fund's management is responsible for [identify the subject matter, for example, the Statement of Investment Performance Statistics for the year ended December 31, 2001]. The sufficiency of these procedures is solely the responsibility of the parties specified in this report.

Consequently, we make no representation regarding the sufficiency of the procedures enumerated below either for the purpose for which this report has been requested or for any other purpose.

Accordingly , we do not express such an opinion or conclusion.

Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

the objective of this pro forma financial information is to show what the significant effects on the historical financial information might have been had the underlying transaction [or event] occurred at an earlier date.

However, the pro forma condensed financial statements are not necessarily indicative of the results of operations or related effect on financial position that would have been attained had the above-mentioned transactions [or event] actually occurred at such earlier date.

An agreed-upon procedures engagement is one in which the practitioner is engaged by a client to issue a report of findings based on specific agreed-upon procedures.

It may be performed on the designated subject matter of a wide variety of assertions as a result of a need of specific parties. The client and the practitioner agree to the procedures the practitioner will perform that the client believes are appropriate.

Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

This report is intended solely for the information and use of [identify the specified party(ies), for example, the audit committees and managements of ABC Inc. and XYZ Fund], and is not intended to be, and should not be , used by anyone other than the specified parties.

Sample Report: Furthermore, there usually will be differences between the forecasted and actual results, because events and circumstances frequently do no occur as expected, and those differences may be material.

We have no responsibility to update this report for events and circumstances occurring after the date of this report.

Sample Report: We did not examine the forecast nor were we required to perform any procedures to verify the accuracy or completeness of the assumptions made by management.

Accordingly, we do not express an opinion, a conclusion, nor provide any form of assurance on the accompanying financial statements or assumptions.

Engagement Types. A practitioner is associated with prospective financial statements primarily in one of three ways:

(1). compilation engagement. (2). examination engagement [the report is generally to be used by a third party]. (3). agreed-upon procedure engagement. note that a review of prospective financial statement is allowed.

Prospective Financial Statement Summary. Reports include a Statement Regarding: An enumeration of procedures performed.

☐ Compilation Report: No. ☐ Examination Report: No. ☐ Agreed-upon procedures: Yes.

Prospective Financial Statement Summary. Reports include a Statement Regarding: PFS conformity with AICPA presentation guidelines.

☐ Compilation Report: No. ☐ Examination Report: Yes. ☐ Agreed-upon procedures: No.

Agreed-upon procedures attestation engagements may be performed provided that the following conditions exist: (I). Independent of the practitioner. (A). Agreement of the parties. (M).Measurability and consistency.

(S). Sufficiency of the procedures. (U). Use of the report is restricted to the specific parties. (R). Responsibility for the subject matter. (E). Engagements to perform agreed-upon procedures on prospective financial statements.

Agreed-Upon Procedures Applied to Prospective Financial Statements. Additional reporting elements include a reference to the prospective financial statements, a disclaimer on whether the statements are presented in conformity with

AICPA guidelines and on whether the underlying assumptions provide a reasonable basis for the statements,a caveat that prospective results may not be achieved, and a statement that the accountant assumes no responsibility to update the report for events occurring after the date of the report.

Agreed-Upon Procedures Applied to Prospective Financial Statements. The preceding discussion regarding conditions are required elements for agreed-upon procedures engagements ["I-AM-SURE"mnemonic, presented earlier in this module ]

Also applies when such engagements are related to prospective financial statements. An additional condition is that the prospective financial statements must include a summary of significant assumptions.

Type of Prospective Financial Statements.

Financial forecasts and projects are two types of prospective financial statements that attempt to reflect a company's expected financial position and expected results of operations.

☐ General use.

General use means that the statements issued will be used by parties not negotiating directly with the responsible party [the issuing company]. only a financial forecast is appropriate for general use.

Examination of a Financial Projection. The standard report above would be changed slightly to include: ☐ a description of the hypothetical assumption used in the first paragraph

["...management is responsible for preparing and presenting the projection based on [identify the hypothetical assumption, for example, the granting of the requested loan as described in the summary of significant assumptions]...."].

Financial Forecast a financial forecast reflects, to the best of the responsible party's knowledge, the expected financial results of a future period. It is based on expected conditions and expected course of action.

Note: in almost all situations, the party responsible for the prospective financial statements is the management of the company.

Financial Forecast: A financial forecast reflects, to the best of the responsible party's knowledge, the expected financial results of future period. it is based on expected conditions and expected courses of action.

Note: in almost all situations, the party responsible for the prospective financial statements is the management of the company.

Partial Presentations. A presentation of prospective financial information that excludes certain essential elements is considered to be a partial presentation that generally is not appropriate for general use. Partial presentations are those that omit one of the following essential elements:

Sales, gross profit, [or cost of sales], unusual or infrequent items, income tax expense, discontinued operations, income from continuing operations, net income, earnings per share, and significant changes in financial position.

Evidence Required. In order for the accountant to make such a claim, sufficient evidence must be obtained.

The accountant must evaluate the preparation, support, and presentation of the statements.

☐ the practitioner is not required to gather supporting evidence, but should be aware of obvious inappropriate assumptions used to construct the statements. Independence is not required, but lack of independence should be disclosed in

a separate paragraph in the compilation report. The practitioner is permitted, but not required, to disclose the reason(s) for the lack of independence in the report. all reasons must be included in the disclosure.

☐ a statement that the practitioner was not engaged to, and did not, conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the subject matter;

a statement that the practitioner does not express an opinion or conclusion; and a statement that if the practitioner had performed additional procedures, other matters might have come to his or her attention that would have been reported.

Sample Report: Examination of a Financial Forecast. Independent Accountant's Report. We have examined the accompanying forecast of XYZ Company, which comprises the forecasted balance sheet as of December 31, 2000,

and the related forecasted statements of income, stockholders' equity, and cash flows for the year then ending, based on the guidelines for the presentation of a forecast established by the American Institute of Certified Public Accountants.

the following items would appear in the practitioner's compilation report: ☐ a statement that the accountant did not examine the forecast nor was the accountant required to perform any procedures to verify the accuracy or completeness of the assumptions made by management,

and , accordingly , does not express an opinion, a conclusion, nor provide any assurance on the prospective financial statements or assumptions;

This report is intended solely for the information and use of [identify the specified party(ies), for example, the audit committees and managements of ABC Inc.

and XYZ Fund], and is not intended to be, and should not be, used by anyone other than the specified parties.

Sample Report: Agreed-Upon Procedures Report. Independent Accountant's Report on Applying Agreed-Upon Procedures. We have performed the procedures enumerated below, which were agreed to by [identify the specified party(ies), for example, the audit committees and managements of ABC Inc.

and XYZ Fund], on [identify the subject matter, for example, the accompanying Statement of Investment Performance Statistics of XYZ Fund for the year ended December 31, 2001].

Sample Report: Agreed-Upon Procedures Report. Independent Accountant's Report on Applying Agreed-Upon Procedures. We have performed the procedures enumerated below, which were agreed to by [identify the specified party(ies), for example, the audit committees and managements of ABC Inc.

and XYZ Fund], on [identify the subject matter, for example, the accompanying statement of Investment Performance Statistic of XYZ Fund for the year ended December 31, 2001].

Sample Report: Examination of Pro Forma Financial Statements. We believe that the evidence we obtained is sufficient

and appropriate to provide a reasonable basis for our opinion.

An examination involves performing procedures to obtain evidence about management's assumptions, the related pro forma adjustments ,and the pro forma amounts in the pro forma condensed balance sheet of X Company as of December 31, 2001,

and the related pro forma condensed statement of income for the year then ended. the nature, timing, and extent of the procedures selected depend on our judgement , including an assessment of the risks of material misstatement of the pro forma financial information, whether due to fraud or error.

In our opinion, the accompanying forecast is presented, in all material respects, in accordance with the guidelines for the presentation of a forecast established by the American Institute of Certified Public Accountants,

and the underlying assumptions are suitably supported and provide a reasonable basis for management's forecast.

There will usually be differences between the forecasted and actual results because events and circumstances frequently do not occur as expected,

and those differences may be material. we have no responsibility to update this report for events and circumstances occurring after the date of this report.

☐ A statement that the accountant did not examine the forecast nor was the accountant required to perform any procedures to verify the accuracy or completeness of the assumptions made by management,

and, accordingly, does not express an opinion, a conclusion, nor provide any assurance on the prospective financial statements or assumptions;

With the issuance of SSAE 18, compilations of prospective financial statements

are no longer addressed in the attestation standards and are instead governed by AR-C section 80 of the SSARS standards.

Sample Report: Examination of Pro Forma Financial Statements. The historical condensed financial statements are derived from the historical financial statements of X Company, which were audited by us, and of Y company, which were audited by other accountants, appearing elsewhere herein [or "and

are readily available"]. The pro forma adjustments are based on management's assumptions described in Note 1. X company's management is responsible for the pro forma financial information. our responsibility is to express an opinion on the pro forma financial information based on our examination.

Type of Prospective Financial Statements. Financial forecasts and projects

are two types of prospective financial statements that attempt to reflect a company's expected financial position and expected results of operations.

Those standards require that we plan and perform the examination to obtain reasonable assurance about whether, based on the criteria in Note 1, management's assumptions provide a reasonable basis for presenting the significant effects directly

attributable to the underlying transaction [or event], and, in all material respects, the related pro forma adjustments given appropriate effect to those assumptions, and the pro forma amounts reflect the proper application of those adjustments to the historical financial statement amounts.

☐ limited use. limited use means that the financial statements will only be used by the responsible party alone or by parties negotiating directly with the responsible party [the issuing company].

both financial forecasts and financial projections are appropriate for limited use. Examples include use in negotiations for a bank loan, submission to a regulatory agency, and use solely within the entity.

☐ Limited Use. limited use means that the financial statements will only be used by the responsible party alone or by parties negotiating directly with the responsible party [the issuing company].

both financial forecasts and financial projections are appropriate for limited use. Examples include use in negotiations for a bank loan, submission to a regulatory agency, and use solely within the entity.

☐ the practitioner is not required to gather supporting evidence, but should be aware of obvious inappropriate assumptions used to construct the statements. Independence is not required ,

but lack of independence should be disclosed in a separate paragraph in the compilation report. The practitioner is permitted, but not required, to disclose the reason(s) for the lack of independence in the report. All reasons must be included in the disclosure.

XYZ Company's management is responsible for preparing and presenting the forecast in accordance with guidelines for the presentation of a forecast established

by the American Institute of Certified Public Accountants. Our responsibility is to express an opinion on the forecast based on our examination.

Sample Report: Compilation of a Financial Forecast. Management is responsible for the accompanying forecasted financial statements of XYZ Company, which comprise the forecasted balance sheet as of December 31, 2002, and the related forecasted statements of income,

changes in stockholders' equity, and cash flows for the year then ended. We have performed the compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA.

Independence is required for

examination engagements.

☐ General Use.

general use means that the statements issued will be used by parties not negotiating directly with the responsible party [the issuing company]. only a financial forecast is appropriate for general use.

Financial Projection. A financial projection

is different from a forecast in that it is based on hypothetical assumptions. a project reflects the financial position and results of operations based on a "what-if" type of scenario.

An examination of prospective financial statement

is more substantial in scope and responsibility than a compilation or an engagement utilizing agreed-upon procedures.

☐ A statement that those standards required that the practitioner plan and perform the examination to obtain reasonable assurance about whether the forecast [or projection]

is presented in accordance with the guidelines for the presentation of a forecast [or projection] established by the AICPA, in all material respects;

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the forecast

is presented in accordance with the guidelines for the presentation of a forecast established by the American Institute of Certified Public Accountants, in all material respects. An examination involves performing procedures to obtain evidence about the forecast.

the purpose of a compilation of prospective financial statements is the proper assembling of the financial data based on the responsible party's assumptions. ☐ there is no assurance of any kind given that the statements have been prepared in accordance with AICPA guidelines

or that the assumptions used are reasonable. ☐ the accountant should read the prospective financial statements with the summaries of significant assumptions and accounting policies, and consider whether they appear to be presented in conformity with AICPA presentations.

(E). Engagements to perform agreed-upon procedures on prospective financial statements.

prospective financial statements must include a summary of significant assumptions.

Pro Forma Financial Statements. Pro forma financial statements are not prospective financial statements, but they may be used to demonstrate the effect of a future or hypothetical event by

showing how it might have affected the historical financial statements if it had occurred during the period covered by those financial statements.

Because the needs of the specified parties may vary widely, the client assumes responsibility for whether the procedures are sufficient,

since the client best understands its own needs. The practitioner has no responsibility for the sufficiency of the procedures.

☐ a statement that the procedures performed were those agreed to by the specified parties identified in the report, and a description of any agreed-upon materiality limits. ☐ a statement that the sufficiency of the procedures is solely the responsibility of the

specified parties and a disclaimer of responsibility for the sufficiency of those procedures. ☐ A statement that the engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants.

Sample Report: Examination of Pro Forma Financial Statements. Our examination was conducted in accordance with attestation standards established by

the American Institute of Certified Public Accountants.

Prospective Financial Statement Summary. Reports include a Statement Regarding: Limited use of report.

☐ Compilation Report: Only required for projection. ☐ Examination Report: Only required for projection. ☐ Agreed-upon procedures: Yes.

Sample Report: Examination of Pro Forma Financial Statements. Independent Accountant's Report. We have examined the pro forma adjustments giving effect to the underlying transaction [or event] described in Note 1 and the application of those adjustments to

the historical amounts in the accompanying pro forma condensed balance sheet of X company as of December 31, 2001, and the related pro forma condensed statement of income for the year then ended [pro forma financial information], based on the criteria in Note 1.

This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review,

the objective of which would be the expression of an opinion or conclusion, respectively, on [identify the subject matter, for example, the accompanying Statement of Investment Performance Statistics of XYZ Fund for the year ended December 31, 2001].

this agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review,

the objective of which would be the expression of an opinion or conclusion, respectively, on [identify the subject matter, for example, the accompanying statement of investment performance statistics of XYZ Fund for the year ended December 31, 2001].

(A). Agreement of the parties.

the practitioner and the specified parties agree regarding the procedures to be performed, the criteria to be used in the determination of the findings, and any materiality limits to be used for reporting purposes.

Attestation standards apply to all agreed-upon procedures engagements, including those related to items from a financial statement.

the practitioner does not provide an opinion or negative assurance.

XYZ Fund's management is responsible for [identify the subject matter, for example, the Statement of Investment Performance Statistics for the year ended December 31, 2001]. The sufficiency of these procedures is solely

the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures enumerated below either for the purpose for which this report has been requested or for any other purpose.

(S). Sufficiency of the procedures.

the specified parties take responsibility for the sufficiency of the procedures for their purposes.

(M).Measurability and consistency.

the subject matter should be capable of reasonably consistent measurement, procedures should be expected to result in reasonably consistent findings, and evidential matter to support the report should be expected to exist.

☐ a caveat that the prospective results may not be achieved; ☐ a statement that the practitioner assumes no responsibility

to update the report for events and circumstances occurring after the date of the report; and ☐ the signature of the practitioner's firm and the date of the report.

The nature, timing, and extent of the procedures selected depends on our judgement, including an assessment of the risks of material misstatement of the forecast,

whether due to fraud or error. we believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.

The purpose of a compilation of prospective financial statements is the proper assembling of the financial data based on the responsible party's assumptions. ☐ there is no assurance of any kind given that the statements have been prepared in accordance

with AICPA guidelines or that the assumptions used are reasonable. ☐ the accountant should read the prospective financial statements with the summaries of significant assumptions and accounting policies, and consider whether they appear to be presented in conformity with AICPA presentations.

I-AM-SURE

you can perform these agreed-upon procedures.

Examination of a Financial Projection. The standard report above would be changed slightly to include:

☐ A description of the purpose of the projection in the first paragraph ["...the projection was prepared for [describe the special purpose, for example, the purpose of negotiating a loan to expand XYZ Company's plant]...."]

Contents of Compilation Report. The following items would appear in the practitioner's compilation report: ☐ identification of the prospective financial statements presented by the responsible party; ☐ a statement that management is responsible for the prospective financial statements;

☐ A statement that the practitioner has performed the compilation engagement in accordance with Statement on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA.

The practitioner may include Explanatory Language regarding matters such as: ☐ disclosure of stipulates facts, assumptions, or interpretations [including the source thereof] used in the application of agreed-upon procedures.

☐ description of the condition of records, controls, or data to which the procedures were applied. ☐ Explanation that the practitioner has no responsibility to update his or her report. ☐ Explanation of sampling risk.

Content of Report Based on Examination. The standard examination report issued by the accountant would contain the following: ☐ a title that includes the word independent, the signature of the practitioner's firm, the city and state of the practitioner's firm, and the date of the report;

☐ identification of the prospective financial statements presented; ☐ an indication that the criteria against which the prospective financial information was measured or evaluated are the guidelines for the presentation of a forecast [or projection] established by the AICPA.

The practitioner's report on agreed-upon procedures should be in the form of procedures and findings. The practitioner's report should contain the following elements: ☐ a title [including the word independent], a signature, city and state where the practitioner practices, and a date.

☐ identification of the specified parties, the subject matter [or related assertion], the nature of the engagement, and the responsible party.

In contrast to historical financial statements, which are the subject of audit engagements, prospective financial statements are forward-looking and based on projections rather than past events.

☐ prospective financial statements may cover a period that has partially expired. ☐ statements for periods that have completed expired are not considered to be prospective. ☐ pro forma financial statements are partial presentations are not prospective financial statements.

In contrast to historical financial statements, which are the subject of audit engagements, prospective financial statements are forward-looking and based on projections rather than past events. ☐ prospective financial statements may cover a period that has partially expired.

☐ statements for periods that have completely expired are not considered to be prospective. ☐ pro forma financial statements and partial presentations are not prospective financial statement.

(R). Responsibility for the subject matter.

☐ the client is responsible for [or has a reasonable basis for providing an assertion about] the subject matter; or ☐ the client is able to provide evidence that a third party is responsible for the subject matter.

Pro Forma Financial Statements. ☐ pro forma financial statements may be examined or reviewed. ☐ pro forma financial information should be labeled accordingly to prevent confusion with historical financial information.

☐ the practitioner should obtain an understanding of the event and evaluated the pro forma adjustments, including any assumptions on which the adjustments are based. The practitioner should also obtain written representations from management.