As part of your audit engagement of Walter's Bank N.A., you have been asked to provide a letter assuring the Office of the Comptroller of the Currency (OCC) that the bank has maintained adequate capital and loan loss provisions against a downturn in their area's economy. Having completed the task, you submit a few drafts of the letter to the partner in charge of the audit for her review. The pertinent sections follow.

a. "... Walter's Bank N.A. has adequately reserved against adversè economic conditions in its local lending area through its loan loss provisions and its capital position."

b. "... We have audited the financial statements of Walter's Bank, N.A., and can assure the OCC that it has adequately reserved against downturns in their local economy through their loan loss provisions and their capital position."

c. "... Having audited the financial statements of Walter's Bank N.A., we can say that it has substantially complied with the loan loss provisions and the capital requirements of the OCC for these circumstances."

Using the above information, 

(1) discuss the deficiencies in each of these reports 

(2) write the pertinent part of a letter of assurance to the OCC so that it meets the appropriate reporting standards.