Roger Francoeur, a candidate for town council, is campaigning on a platform of open government and fiscal responsibility. During his campaign, Francoeur requests that you prepare personal financial statements, fully disclosing his financial position for the twelve-month period ended June 30, 1999. Unfamiliar with the nature of personal financial statements, Francoeur asks that you explain the major similarities and differences between the financial statements and audit reports that are issued for personal and corporate financial statements.

Required: 

Describe the major similarities and differences alluded to by Francoeur, indicating the rationale underlying each difference. Ignore differences related to the titles of financial statements.