Assume the following engagement letter was sent by a CPA: Mr. John Smith, Controller (X Y Z)

Question:

Assume the following engagement letter was sent by a CPA:

Mr. John Smith, Controller \(X Y Z\) Corporation 1 Main Street Urbun, Illinois 61555 Dear Mr. Smith:
This letter is to express our understanding of the arrangements to review the financial statements of XYZ Corporation as of December 31, \(19 X 0\).
Our examination will be made in accordance with established auditing standards and will include the procedures necessary to express an unqualified opinion on the financial statements. The examination will include the discovery of errors and irregularities that may have an effect on the financial statements.
We are pleased that you have appointed us to be your auditor and we look forward to a profitable professional relationship with you. Please indicate your agreement with these plans by notifying us by phone at your earliest convenience.

Required:
List the deficiencies in the engagement letter. For each deficiency, indicate the proper wording. Use the following format for your answer-do not write a proper engagement letter: image text in transcribed