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Independent Accountant s Report We have examined the accompanying projected balance sheet, statements of income, retained earnings, and cash ows of XYZ Company as of December 31, 20XX, and for the year then ending XYZ Company s management is responsible for the projection, which was prepared for [state special purpose, for example, the purpose of negotiating a loan to expand XYZ Company s plant ] Our responsibility is to express an opinion on the projection based on our examination Our examination was conducted in accordance with attestation standards established by the AICPA and, accordingly, included such procedures as we considered necessary to evaluate both the assumptions used by management and the preparation and presentation of the projection We believe our examination provides a reasonable basis for our opinion In our opinion, the accompanying projection is presented in conformity with guidelines for presentation of a projection established by the AICPA, and the underlying assumptions provide a reasonable basis for management s projection [describe the hypothetical assumption, for example, assuming the granting of the requested loan for the purpose of expanding XYZ Company s plant as described in the summary of signi cant assumptions ] However, even if [describe hypothetical assumption, for example, the loan is granted and the plant is expanded ], there will usually be differences between the projected 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 The accompanying projection and this report are intended solely for the information and use of [identify speci ed parties, for example, XYZ Company and DEF National Bank ] and are not intended to be and should not be used by anyone other than these speci ed parties [Signature] [Date].

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If the presentation is summarized, the opening sentence of the report would begin, We have examined the accompanying summarized projection of XYZ Company as of December 31, 20X1

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When the prospective nancial statements are presented as a range, the report also includes a separate paragraph describing the range [see Subsection 406(d) for an example] (c) MODIFIED EXAMINATION REPORTS reports: There are four types of modi ed examination

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1 A quali ed report, used when the statements depart from the AICPA presentation guidelines but the de ciency does not affect the assumptions (although if the matter is highly material, the accountant may issue an adverse report) 2 An adverse report, used when the statements fail to disclose signi cant assumptions or when the assumptions do not provide a reasonable basis for the presentation 3 A disclaimer used when the accountant is precluded from applying procedures considered necessary in the circumstances 4 A reference to another accountant, used when another accountant examines the prospective nancial statements of a signi cant portion of the entity, such as a major subsidiary (i) Quali ed Opinion The accountant issues a quali ed opinion if there is a material presentation de ciency that does not affect the assumptions The following is an examination report quali ed because of a presentation de ciency:

Independent Accountant s Report We have examined the accompanying forecasted balance sheet, statements of income, retained earnings, and cash ows of XYZ Company as of December 31, 20XX, and for the year then

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ending XYZ Company s management is responsible for the forecast Our responsibility is to express an opinion on the forecast based on our examination Our examination was conducted in accordance with attestation standards established by the AICPA and, accordingly, included such procedures as we considered necessary to evaluate both the assumptions used by management and the preparation and presentation of the forecast We believe our examination provides a reasonable basis for our opinion The forecast does not disclose signi cant accounting policies Disclosure of such policies is required by guidelines for presentation of a forecast established by the AICPA In our opinion, except for the omission of the disclosure of the signi cant accounting policies as discussed in the preceding paragraph, the accompanying forecast is presented in conformity with guidelines for presentation of a forecast established by the AICPA, and the underlying assumptions provide a reasonable basis for management s forecast However, 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 [Signature] [Date]