1. a.List the types of engagements that an auditor may have relating to a Prospective Financial Statements

b.Describe Pro Forma Financial Statements

i.What are they based on?

ii.What type of engagements may the auditor enter into relative to pro form statements?

2 PCAOB Changes to the Auditor's Report

a.What type of companies does the PCAOB govern?

Issuers

Discuss the form of the auditor report including the names and order of the various sections and to whom it must be addressed.

b.Discuss the requirement to include CAMs.

i.Describe the level of detail to be included in the report. Be specific.

ii.Discuss one benefit of the CAM requirement.

iii.Discuss a possible problem with the CAM requirement.