Murray & Co.,CPAs completed the audit of Classic,Inc.,a nonpublic entity,on March 1,2018 for a January 31,2018 fiscal year end.The audit team encountered no significant issues and found no material misstatements.Murray & Co.has audited Classic,Inc.for several years and past audits did not reveal any significant issues or material misstatements.The audit team partner determined that a standard (unmodified)report on Classic,Inc.'s financial statements was appropriate.The auditors' report,drafted by I.M.Nu,a staff assistant,is provided below.
Independent Auditor's Report
To the Board of Directors and Shareholders
Classic,Inc.
We have audited the accompanying financial statements of Classic Inc.,which comprise the balance sheet as of January 31,2018 and the related statements of changes in shareholders' equity and cash flows for the year then ended,and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.We conducted our audit in accordance with generally accepted auditing standards.Those standards require that we plan and perform the audit to obtain absolute assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements,including the assessment of the risks of material misstatement of the financial statements,whether due to fraud or error.In making those risk assessments,the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.Accordingly,we express no such opinion.An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management,as well as evaluating the overall presentation of the financial statements.
Opinion
In our opinion,the financial statements referred to above present fairly,the financial position of Classic,Inc.as of January 31,2018 and the results of its operations and its cash flows for the year then ended.
Murray & Co,CPAs
January 31,2018
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.,a nonpublic entity,on March 1,2018 for a January 31,2018 fiscal year end.The audit team encountered no significant issues and found no material misstatements.Murray & Co.has audited Classic,Inc.for several years and past audits did not reveal any significant issues or material misstatements.The audit team partner determined that a standard (unmodified)report on Classic,Inc.'s financial statements was appropriate.The auditors' report,drafted by I.M.Nu,a staff assistant,is provided below.
Independent Auditor's Report
To the Board of Directors and Shareholders
Classic,Inc.
We have audited the accompanying financial statements of Classic Inc.,which comprise the balance sheet as of January 31,2018 and the related statements of changes in shareholders' equity and cash flows for the year then ended,and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.We conducted our audit in accordance with generally accepted auditing standards.Those standards require that we plan and perform the audit to obtain absolute assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements,including the assessment of the risks of material misstatement of the financial statements,whether due to fraud or error.In making those risk assessments,the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.Accordingly,we express no such opinion.An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management,as well as evaluating the overall presentation of the financial statements.
Opinion
In our opinion,the financial statements referred to above present fairly,the financial position of Classic,Inc.as of January 31,2018 and the results of its operations and its cash flows for the year then ended.
Murray & Co,CPAs
January 31,2018
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.