The fieldwork on Triple Steel Corporation has been completed. You were responsible for preparing the preliminary draft of the financial statements and auditors' report. You had the draft statements and report typed for presentation to the supervisor, Joan Fisher. You have worked for Joan before and know she demands the very best work. You are now reviewing the draft to make sure it is final in all respects.

Required:

a. Review the following financial statements and auditors' report. Note any changes that will have to be made to them before you submit them to the supervisor. Changes may be required because of omissions (e.g., inadequate disclosure) or carelessness in drafting the report (e.g., different amounts appearing for the same item in different places). It will not be necessary to check the clerical accuracy of the statements.

b. List any matters that you want to be sure have been investigated and discussed with management.

We have audited the accompanying financial statements of Triple Steel Corporation for the year ended June 30, 19X2. These financial statements are the responsibility of management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We previously made a similar audit of the financial statements for the preceding year.
In our opinion, the accompanying balance sheet and statements of operations and retained earnings present fairly the financial position of Triple Steel Corporation at June 30, 19X2, and the results of its operations for the year then ended in conformity with generally accepted accounting principles.

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(Adapted and used with permission of Ernst & Young) Auditors' Report Board of Directors Triple Steel Corporation Detroit, Michigan