What type of engagement is performed on pro forma financial statements?
The CPA can perform an examination or review of pro forma financial information under SSAE’s. Since pro forma financial information is prospective and not historical information, then an audit engagement cannot be performed.
If the CPA expresses positive assurance, then an examination would be performed.
IF the CPA express negative/limited assurance, then a review would be performed. Regardless of the engagement type, the CPA must be independent.
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