Murray & Co., CPAs completed the audit of Classic, Inc., an issuer, on March 1, 2021 for a January 31, 2021 fiscal year end. The audit team encountered no significant issues and found no material misstatements. The audit team partner determined that a standard report on Classic, Inc.'s financial statements was appropriate. The auditors' report, drafted by I.M. Nu, a staff assistant, is provided below. (Nu has decided to present separate reports on the financial statements and on internal control over financial reporting).
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
Classic, Inc.
Opinion on the Financial Statements
We have audited the accompanying balance sheet of Classic Inc. (the Company) as of December 31, 2020 and the related statements of comprehensive income, stockholders' equity, and cash flows for the period ended December 31, 2020, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, the financial position of the Company as of December 31, 2020, and the results of its operations and its cash flows for the period ended December 31, 2020.
Basis for Opinion
Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee. Because we are expressing an unqualified opinion, PCAOB standards do not require communication of critical audit matters in our report.
Murray & Co, CPAs
January 31, 2021
Required:Identify the deficiencies and errors in the draft report. Do not rewrite the report, but be specific as to what is incorrect or omitted. Organize your answer by paragraph or section.

Question

Quizplus · Accepted Answer

The Answer of Murray & Co., CPAs completed the audit of Classic, Inc., an issuer, on March 1, 2021 for a January 31, 2021 fiscal year end. The audit team encountered no significant issues and found no material misstatements. The audit team partner determined that a standard report on Classic, Inc.'s financial statements was appropriate. The auditors' report, drafted by I.M. Nu, a staff assistant, is provided below. (Nu has decided to present separate reports on the financial statements and on internal control over financial reporting).
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
Classic, Inc.
Opinion on the Financial Statements
We have audited the accompanying balance sheet of Classic Inc. (the Company) as of December 31, 2020 and the related statements of comprehensive income, stockholders' equity, and cash flows for the period ended December 31, 2020, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, the financial position of the Company as of December 31, 2020, and the results of its operations and its cash flows for the period ended December 31, 2020.
Basis for Opinion
Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee. Because we are expressing an unqualified opinion, PCAOB standards do not require communication of critical audit matters in our report.
Murray & Co, CPAs
January 31, 2021
Required:Identify the deficiencies and errors in the draft report. Do not rewrite the report, but be specific as to what is incorrect or omitted. Organize your answer by paragraph or section.