FYI Pro Forma Financial Statements - Applicability: AT-C 310, Reporting on Pro Forma Financial Information, applies to examination or review engagements involving pro forma financial information. It does not apply to agreed-upon procedures engagements involving pro forma financial information or when parties request a comfort letter on pro forma financial information in connection with a stock offering. **For example, pro forma financial information may be used to show the effects of (a) business combinations; (b) changes in capitalization; (c) dispositions of significant business segments; (d) changes in the form of business organizations; or (e) proposed sales of securities.** ** 1. For an examination, the historical financial statements must have been audited; 2. For a review, the historical financial statements must have been either audited or reviewed—they cannot express a higher level of assurance on the pro forma information than on the historical financial statements;