The following report was prepared at the conclusion of a review service for a nonpublic entity:

We have (1) assisted the management of \(X Y Z\) Company in the preparation of the accompanying balance sheet of the \(X Y Z\) Company at December \(31,19 X 0\), and the related (2) operating statement and changes in financial position for the year then ended. All information included in (3) these statements is the representation of the management of the \(X Y Z\) Company.

(4) Users of these financial statements should be aware that our assistance was limited to the (5) classification of information supplied by management and that we (6) only give negative assurance as to whether there are (7) material corrections that must be made to make the statements conform with (8) acceptable accounting practices.

{Required:}

For each numbered item indicate either that

(a) the item is correct or

(b) the substitute wording that would make the item correct.