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3 M. Jordan & E. Stone, CPAs, audited the financial statements of Tech Company, a non-issuer, for the year ended December 31, 2019, and expressed an unmodified opinion. For the year ended December 31, 2020, Tech issued comparative financial statements. Jordan & Stone reviewed Tech's 2020 financial statements and B. Kent, an assistant on the engagement, drafted the accountants' review report that follows. Stone, the engagement supervisor, decided not to reissue the prior-year audit report but instructed Kent to include a separate paragraph in the current-year review report describing the responsibility assumed for the prior-year audited financial statements 3.33 points Stone reviewed Kent's draft and indicated in the following supervisor's review notes that the draft contained several deficiencies. eBook Accountants' Review Report-Kent's Draft Print We have reviewed and audited the accompanying financial statements of Tech Co, which comprise the balance sheets as of December 31, 2020 and 2019, and the related statements of income, changes in stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements. These engagements were conducted in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA and generally accepted auditing standards. A review includes primarily applying analytical procedures to management's financial data and making inquiries of company management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. References Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements, this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error. Accountant's Responsibility We are required to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. We believe that the results of our procedures provide a reasonable basis for our conclusion. Accountant's Conclusion Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in accordance with accounting principles generally accepted in the United States of America. Because of the inherent limitations of a review engagement, this report is intended for the information of management and should not be used for any other purpose Other Matter We audited the financial statements for the year ended December 31, 2019, and our report was dated March 2, 2020. We have no responsibility for updating that report for events and circumstances occurring after that date. Jordan and Stone, CPAS Chicago, IL March 1, 2021 Required: These supervisor's review notes may or may not be correct. For each item a-m, indicate whether Stone is correct or incorrect in the criticism of Kent's draft. a. b C. d. e. f. g. The report should contain no reference to the prior-year audited financial statements in the first paragraph. All current-year financial statements are not properly identified in the first paragraph. The report should contain no reference to the American Institute of Certified Public Accountants in the first paragraph. The basic procedures performed in a review (analytical procedures and inquiries) should be provided in the Accountant's Responsibility section of the report and not the first paragraph. The report should contain no comparison of the scope of a review to an audit in the first paragraph. Limited assurance should be expressed on the current-year reviewed financial statements in the first paragraph. The report should contain a statement that no opinion is expressed on the current-year financial statements in the first paragraph. The report should contain a reference to "accounting principles generally accepted in the United States of America" in the Management's Responsibility for the Financial Statements section. The report should not express a restriction on the use of the accountants' review report in the Accountant's Conclusion section. The Accountant's Responsibility section should indicate that the accountant is required to be independent of the client. The report should indicate the type of opinion expressed on the prior-year audited financial statements in the other matter paragraph. The report should indicate that no auditing procedures were performed after the date of the report on the prior-year financial statements in the other-matter paragraph. The report should not contain a reference to "updating the prior-year auditors' report for events and circumstances occurring after that date" in the other-matter paragraph. h. i. i. k 1. m

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