A client who recently received a financial statement audit is somewhat confused about the meaning of the independent auditor's report. She understands that "everything is okay," but she is not certain about the meaning of some of the words and phrases.

You decide to explain all the key words and phrases in an attempt to educate her about the meaning of the auditor's report.

Required:

Identify the key words and phrases in the report on pages 16-17 and explain them in such a way that a nonauditor would understand. Select the appropriate words and phrases.