On completion of all field work on September 23, \(19 \times 1\), the following report was rendered by Timothy Ross to the directors of The Rancho Corporation:

To the Directors of The Rancho Corporation:

We have examined the balance sheet, the related statement of income and retained earnings of The Rancho Corporation and the statement of changes in financial position as of July \(31,19 X 1\) and \(19 \times 0\). Our examinations were made in accordance with the standards of the profession and included all tests of the statements that you considered appropriate in the circumstances.

In our opinion, with the exception of some minor errors that are considered immaterial, the aforementioned financial statements present fairly the financial position of The Rancho Corporation at July 31, 19X1 and 19X0, and the results of its operations for the years then ended, in conformity with pronouncements of the Financial Accounting Standards Board applied consistently throughout the period.

Timothy Ross, CPA September \(23,19 \times 1\)

Required

a. List and explain deficiencies and omissions in the auditor's report.

b. Organize your answer sheet by paragraph (scope and opinion) of the auditor's report.