 Hello and welcome to the session. This is Professor Farhad in which we would look at a compliance attestation report. Specifically, we're going to be looking at two reports. One is an examination and the other one is an agreed upon procedures. And what's neat about those compliance attestation reports is they summarize everything that we learn about the compliance attestation because that's the final product. Let's go ahead and get started. First thing I need to tell you just like all the other attestation reports, no standard report. The AI CPA provide examples and what I did, I took those examples and I showed you what would a report typically would look like. First, we have to have the title and the word independent has to be there. We are providing insurance. Then we have to have an appropriate address. See who are we addressing this report to nature of the engagement. Here we are examined. We are conducting an examination. We have examined Adam company's compliance with requirements listed in attachment one, whatever that attachment one during the period, January 1st, the December 31st, tax one identified the compliance matter. Again, it's an attachment one. Then we have to talk about the responsibility of the company management of Arab company is responsible for the compliance with the specified requirement. Our responsibilities to express an opinion. Remember, if we are conducting an examination, we have to issue an opinion on the compliance of Adam company. Then we list the procedures. What did we do? What is an examination? Well, it's conducted in accordance with the attestation standards established standards established by the AI CPA. Those standards require that we plan and perform the examination to obtain reasonable assurance whether Adam is in compliance and all material respect with the specified requirement reference above. Then we talked about what is an examination. It involves performing procedures to obtain evidence whether that did happen. The nature timing and extent selected depend on our judgment including an assessment of the risk of material non-compliance whether that's due to error or fraud. Again, this is an examination. Practically all examination sounds similar. We believe the evidence what that we obtain is sufficient and appropriate to provide to provide reasonable assurance for our opinion. Again, we need sufficient appropriate evidence because this is an examination and examination is basically an audit except we cannot call it an audit because we are not auditing. We are not examining historical financial statements. Then we'll have to let you know that this report does not provide legal determination. Our examination does not provide legal determination whether Adam company is in compliance or not. That's for the government or the appropriate legal authority to determine and our opinion based on our review based on our examination. Let's be specific. We cannot do any reviews for compliance. Adam company complied with all material respect. But again, this is not a legal determination. The next thing we're going to look at is an agreed upon procedures for a compliance attestation. Before we proceed any further, I have a public announcement about my company farhatlectures.com. Farhat accounting lectures is a supplemental educational tool. That's going to help you with your CPA exam preparation as well as your accounting courses. My CPA material is aligned with your CPA review course such as Becker, Roger, Wiley, Gleam, Miles. My accounting courses are aligned with your accounting courses broken down by chapter and topics. My resources consist of lectures, multiple choice questions, true false questions, as well as exercises. Go ahead. Start your free trial today. No obligation. No credit card required. So let's take a look at the agreed upon procedures. Again, we have to have a title and the word independent. We have to have an addressee, practically the same. And we have to look tell you what's the nature of the engagement. We have performed the procedures enumerated below. Now they will be listed here, which were agreed to by management and the board of directors of Adam company related to guess what we are reporting on Adam company's internal control over compliance. Remember in the examination, we did the examination for the compliance with the requirement. We could do a compliance on the assertion or we can do a compliance on the internal control over compliance, which requirement is listed in attachment one. So this is an agreed upon procedure in AUP and an AUP you can do an internal control over compliance and engagement of internal control over compliance. Adam's Adam company's management is responsible for its internal control over compliance. We have to say this, the sufficiency of these procedure is solely the responsibility of the party specified in the report. We are starting to say that this report is limited to specific parties and we're going to limit at the end the report, but this is we're starting to do so. 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. Just we're starting to limit this report. Now we would include all the procedures that we perform as well as the finding if there's any findings, especially findings of non-compliance and based on that we have to determine what should be, you know, what should we do? Then we have a little bit more about the report list of the procedures. It was conducted in accordance with AI CPA, AI CPA attestation standard. We were not engaged to and did not conduct an examination or a review. So we have to tell you this is not an examination. This is not a review and examination. We would have issued an opinion and a review. We would issued a conclusion. We're not doing so. Just just want to let you know. Therefore, we don't express an opinion or a conclusion. Also, we want to let you know had we performed additional procedures, other matter might have to come to our attention, but we did very specific thing. We followed the AI CPA and then agreed upon procedures with the client. Now, again, because this is an AUP agreed upon procedures, all agreed upon procedures, we limit the report because it's agreed between specified parties. This report is intended solely for the information and use of management of the management and the board of directors of Adam company is not intended to be and should not be used by any anyone other than the specified parties. And what do we do? We have a signature block. What should you do now? Go to far have lectures and work MCQs about attestation engagement, compliance, engagement, pro forma prospective and DNA socks. You have to be familiar with those concepts for the CPA exam. Don't shortchange yourself. This is important. Good luck. Study hard and of course stay safe.