Audit report

The following audit report was prepared by a small auditor.

To whom it may concern

We have examined the accounting records of De Young Corporation for the year ended 31 December, 2012. We counted the cash and marketable securities, audited the controller without doubting his integrity, studied the accounting methods in use (which were consistently followed throughout the year), and made test of the ledger accounts for assets and liabilities. The internal control contained no weaknesses.

In our opinion the accompanying balance sheet and related income statement present correctly the financial conditions of the Corporation at 31 December 2012.

The accounting records of De Young Corporation are maintained in accordance with accounting principles generally observed throughout the industry. Our examination was made in accordance with generally accepted auditing standards, and we certify the records and financial statements without qualification.

Signed

Required

1. Review this report systematically from beginning to end showing that you know more than the small auditor, considering each sentence in turn. Use a separate paragraph with an identifying heading for each point, as for example, Paragraph 1, sentence 1. You may also wish to make comments on the overall contents of each paragraph and upon any omission. Give reason to support your views.

2. After completing this critical review of the report, draft a revised report on the assumption that the audit was adequate in all respects and disclosed no significant deficiencies.