 Hello and welcome to the session. This is Professor Farhad in which we would look at an examination report. In the prior session, we looked at the examination engagement, which is under the attestation engagement. So we are learning about the attestation engagement. And remember, we have three of them, examination, review and agree the procedures. Now we explain the examination engagement, I'm going to show you the end product. And the end product is very important because it's going to wrap up everything that we learned and put it into an actual practical format. So this is the report. Let's start with the first thing. The first thing we want to know is there is no standard format. The AI CPA provides several examples on their website as well as in their literature about what a report would look like. But let's look at a typical report to see what's what's included and have a better understanding of examination. First, you have to have a title and the word independent must be there because we are giving some sort of an assurance. So it's very important to mention the word that we are independent as a practitioner. Then you have to list the address. See who are we addressing the report to? We have examined notice the word examined not audited. That's very important. The company schedule of investment. So this is the subject matter for our purpose. This is what we are doing. We are dealing with the schedule of investment for Adam company for the year ended, whatever the period is. Now we look at the management responsibility presenting the schedule of investments in accordance with the criteria. What are the criteria? See note X. Our responsibility as practitioners is to express an opinion. Notice when we say examine examination we provide an opinion and that opinion is a positive opinion is a positive assurance. So it's it's it's quite high. It's the highest level basically 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. Now after that we're going to go through the scope of work. We are going to explain what did we do? What did we follow and how do you perform to work? It's going to be few sentences here. Let's take a look at them. The first thing we want to mention is this was conducted in accordance with the attestation standard established by the AI CPA attestation standards by the AI CPA. These standards require that we plan and perform the examination to obtain a reasonable evidence. That's important. We mentioned the word reasonable evidence. Whether the schedule of investment return is in accordance with the whatever the criteria is in all material respect. Now notice this sounds very similar like an audit. And as I told you in the prior session examination sounds a lot like an audit, but we cannot call it an audit. An examination involved performing procedures to obtain evidence about the subject matter, the schedule of investment return, the nature timing and the extent of the procedure depend on our judgment, including an assessment of the risk of material misstatement, whether due to error or fraud. Now, we believe we obtained, we believe the evidence we obtained is sufficient and appropriate. Notice here, we have enough evidence to provide reasonable, not absolute reasonable assurance. So we have to mention sufficient and appropriate. And we have to mention reasonable assurance. That's the highest level of assurance. Now if we need a paragraph to discuss the limitation if needed, if there's any limitation, and most likely there's always limitations for everything. So if there's any limitation inherent limitation about the subject matter or the assertion or our work, we need to mention it at a paragraph, if we need to emphasize anything about the attestation engagement or the subject matter, then we go into our opinion, the schedule for the year is presented according to the criteria, whatever the criteria is. It's it's it's explained in note X. Then obviously we sign the practitioner signature, the practitioner city and state and the date of the practitioner's report. Now this is a clean opinion. Now we could also have modified opinion. It means it's not clean. It's not unmodified. Two reasons why we could have a modified opinion. It could be a scope issue. And when we say scope, think of gas. It's think of gas. Think of evidence. We were not able to collect sufficient appropriate evidence. This is one reason we would modify the opinion or it could be about the subject matter. Think about gap. The subject matter not according to the criteria. So they're not following what they're saying they're following. They're not following the criteria. So under those circumstances, we would modify and we modify when we modify, we could have a qualified adverse or a disclaimer. Now a qualified depending on the degree of the problem in one or two adverse if there's a problem in the subject matter and disclaimer of the problem is gas. Very, very similar in terms of concept and logic as the audit reports. So if you don't know when do we have a qualified adverse and disclaimer, go back to the audit reports because they follow the same concept. Now on the exam, most likely they will not ask you about these questions like the most likely you need to be familiar with the examination over all the format. But if they do, just remember use the same logic and the same thing that you learn about audit reports. So to learn about examination, I'm assuming that you already learned about the audit report. Now this topic is covered on the CPA exam. The statement on standard for attestation engagement is important. Attestation engagement in general is tested on the exam heavily. So make sure you are comfortable with it, familiar with it. Now I do provide you more information than your typical CPA review course. And the reason is I want you to understand it inside out. So whatever they ask you, you'll be able to answer. Good luck, study hard, go to far hat lectures and work in CQs and true false questions.