Question

The auditors’ report that follows was drafted by a staff accountant of Smith & Co., CPAs, at the completion of the audit of the financial statements of Lenses Co. (a public company) for the year ended December 31, 20X1.

Report of Registered Public Accounting Firm
To the Management of Lenses Co.:
We have examined the accompanying consolidated balance sheet of Lenses Co. as of December 31, 20X1 and 20X0, and the related consolidated statement of income, stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 20X1. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. All PCAOB requirements were met on this audit.
We conducted our audits in accordance with the standards of generally accepted auditing standards (United States). Those standards require that we plan and perform the audit to obtain positive assurance about whether the financial statements are free of all misstatements. 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 audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present, in all material respects, the consolidated financial position of Lenses Co. at December 31, 20X1 and 20X0, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 20X1, in conformity with U.S. generally accepted accounting principles applied on a consistent basis.
We also have reviewed, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Lenses Co.’s internal control over financial reporting as of December 31, 20X1, based on criteria established in the Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 15, 20X2, expressed an unmodified opinion thereon.
Smith & Co., CPAs
Dallas, Texas
February 15, 20X2

Identify deviations from the public company standard report.



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  • CreatedOctober 27, 2014
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