The following audit report was issued at the turn of this centuryt:

New York March 12, 1903 To the Stockholders of the United States Steel Corporation:

We have examined the books of the U.S. Steel Corporation and its Subsidiary Companies for the year ending December 31, 1902, and certify that the Balance Sheet at that date and the Relative Income Account are correctly prepared therefrom.

We have satisfied ourselves that during the year only actual additions and extensions have been charged to Property Account; that ample provision has been made for Depreciation and Extinguishment, and that the item of "Deferred Charges" represents expenditures reasonably and properly carried forward to operations of subsequent years.

We are satisfied that the valuations of the inventories of stocks on hand as certified by the responsibie officials have been carefully and accurately made at approximate cost; also that the cost of material and labor on contracts in progress has been carefully ascertained, and that the profit taken on these contracts is fair and reasonable.
Full provision has been made for bad and doubtful accounts receivable and for all ascertainable liabilities.
We have verified the cash and securities by actual inspection or by certificates from the Depositories, and are of opinion that the Stocks and Bonds are fully worth the value at which they are stated in the Balance Sheet.
And we certify that in our opinion the Balance Sheet is properly drawn up so as to show the true financial position of the Corporation and its Subsidiary Companies, and that the Relative Income Account is a fair and correct statement of the net earnings for the fiscal year ending at that date.
PRICE, WATERHOUSE \& CO.
Required:

a. Contrast the scope of the examination in this report with the scope of the examination in the auditor's standard report.

b. Contrast the manner in which the nature of the examination is indicated in this report with the manner of explaining the nature of the examination in the standard report.

c. Compare the last paragraph of the above report with the opinion paragraph of the auditor's standard report.