You have reviewed the financial statements of Classic Company for the year ended June 30; 2006.The only unusual finding is that the company deferred $350,000 of research and development costs rather than expensing them. The costs related to a product that the client believed was certain to be profitable in the future. You are convinced that the product will be profitable, but not that the expenses should have been deferred.

Required
Write the limited assurance and explanatory paragraphs for an appropriate review report.