$3-15$ The Intuition Underlying an Attestation Report

On January $27,2008,$ Sandeen & Walsh LLP issued the following attestation report:

Independent Accountant's Report

As required by Article VI$,$ Section $7($a$)(4)$ of the Supplemental Unemployment Benefit Plan $($the Plan$)$ between North American Motors Corp. $($the Company$)$ and International Union, United Automobile, Aerospace and Agricultural Implement Workers of America and its affiliated Local Unions as designated $($collectively$,$ the Union$),$ we have examined the following special purpose statements:

$1.$ The amounts of maximum funding of the fund and credit unit cancellation base for the months of January to December $2007,$ inclusive,

$2.$ The amounts by which the Company contribution to the Union was reduced for benefits paid and amounts of net Company contributions for the months of January to December $2007,$

$3.$ The number of hours for which employees received pay and the number of such hours with respect to which the Company shall not have made contributions to the fund and the amount of Company contributions at the applicable rate for each hour for the months of January to December $2007,$ inclusive, and

$4.$ The number and amount of Automatic Short$-$Week Benefits paid to employees and the amount of such benefits used to reduce contributions for the months of January to December $2007,$ inclusive.

These special purpose statements are the responsibility of the Company's management.

Our responsibility is to express an opinion on these statements based on our examination.

The accompanying statements have been prepared for the purpose of complying with the provisions of Article VI$,$ Sections $7($a$)(1)$ and $($a$)(2)$ of the Plan.

In our opinion, the above$-$mentioned statements present fairly, in all material respects, the information stated therein for the months of January to December $2007,$ inclusive, in accordance with the provisions of Article VI$,$ Sections $7($a$)(1)$ and $($a$)(2)$ of the Plan.

This report is intended solely for the information and use of the Board of Directors of the Company and the Union, and should not be used for any other purpose.

Required: Discuss the economic motive$-$the intuition$-$underlying the report.

$3-16$ The Economic Motive and Apparent Risk in an Attestation Engagement

The following is an independent accountant's attestation report.

Independent Accountant's Report

Crownhill Super Computers, Inc.

$4500$ Columbus Way

Springfield, IL $62703$

We have examined the accompanying schedule computing the average post$-$purchase end$-$user support time supplied by Crownhill Super Computers, Inc., $($the Schedule$)$ to major purchasers for the period November $1,2007$ to October $31,2008.$ Our examination was made in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included such procedures as we considered necessary in the circumstances. Our responsibility is to express an opinion on the Schedule.

In our opinion, the Schedule presents, in all material respects, the average post$-$purchase end$-$user support time supplied by Crownhill Super Computers, Inc., to major purchasers for the period November $1,2007$ to October $31,2008.$

This report is intended solely for the information and use of the management of Crownhill Super Computers, Inc., and should not be used for any other purpose.

Hemphill & Noyes, LLP

Required:

$1.$ Discuss the intuition$-$the economic motive$--$underlying the engagement.

$2.$ What risks do you see accruing to Hemphill & Noyes from the wording of the report?