FYI Examination Engagements on Prospective Financial Information Preconditions— 1. The practitioner should not accept an engagement to examine a Forecast or projection unless the responsible party has agreed to disclose the significant assumptions; 2. Projection unless the responsible party has agreed to identify which of the assumptions are hypothetical and to comment on the limitations of the projection's usefulness; or 3. Partial presentation that does not comment on the limitations of the presentation's usefulness. **The practitioner should request a written assertion from the responsible party; if that party refuses, the practitioner should withdraw when that is permitted by applicable law or regulation.** The practitioner should request the required written representations from the responsible party (even if the engaging party is not the responsible party). There is no alternative to obtaining the requested representations, so the responsible party's refusal to furnish the representations is a scope limitation that may preclude an unmodified opinion and warrant withdrawal.

1. If the prospective financial information departs in a material way from AICPA presentation guidelines—The practitioner should express a qualified or adverse opinion. 2. If the prospective financial information fails to disclose any “significant assumptions” or if one or more of the significant assumptions are not suitably supported or do not provide a reasonable basis for the forecast or projection—The practitioner should express an adverse opinion. 3. If unable to obtain sufficient appropriate evidence as a basis for the opinion—The practitioner should express a disclaimer of opinion. **Note: Any type of prospective financial statements (either a forecast or a projection) would be appropriate for limited use; however, only a forecast is appropriate for general use. A forecast has to be based on a realistic premise that is supportable; however, the premise for a projection need not be supportable, although the hypothetical assumptions should be consistent with the presentation's purpose. In evaluating assumptions other than hypothetical assumptions, the practitioner can conclude that they are suitably supported if each significant assumption is supported by the “preponderance” of information.** **Partial presentations usually are appropriate only for limited use. The practitioner should include a description of any limitations on the usefulness of the presentation.**