Jordan \& Stone, CPAs, audited the financial statements of Tech Co., a nonpublic entity, for the year ended December 31, 19X1, and expressed an unqualified opinion. For the year ended December 31, 19X2, Tech issued comparative financial statements. Jordan \& Stone reviewed Tech's 19X2 financial statements and Kent, an assistant on the engagement, drafted the accountants' review report below. Land, the engagement supervisor, decided not to reissue the prior year's auditors' report, but instructed Kent to include a separate paragraph in the current year's review report describing the responsibility assumed for the prior year's audited financial statements. This is an appropriate reporting procedure.

Land reviewed Kent's draft and indicated in the Supervisor's Review Notes below that there were several deficiencies in Kent's draft.

{Accountant's Review Report}

We have reviewed and audited the accompanying balance sheets of Tech Co. as of December 31, 19X2 and 19X1, and the related statements of income, retained earnings, and cash flows for the years then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants and generally accepted auditing standards. All information included in these financial statements is the representation of the management of Tech Co.

A review consists principally of inquiries of company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole.
Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements. Because of the inherent limitations of a review engagement, this report is intended for the information of management and should not be used for any other purpose.
The financial statements for the year ended December 31, 19X1, were audited by us and our report was dated March 2, 19X2. We have no responsibility for updating that report for events and circumstances occurring after that date.
Jordan and Stone, CPAs March 1, 19X3 {Required:}
Items a through \(\mathbf{m}\) represent deficiencies noted by Land. For each deficiency, indicate whether Land is correct or incorrect in the criticism of Kent's draft.
{Supervisor's Review Notes}

a. There should be no reference to the prior year's audited financial statements in the first (introductory) paragraph.

b. All the current-year basic financial statements are not properly identified in the first (introductory) paragraph.

c. There should be no reference to the American Institute of Certified Public Accountants in the first (introductory) paragraph.

d. The accountant's review and audit responsibilities should follow management's responsibilities in the first (introductory) paragraph.

e. There should be no comparison of the scope of a review to an audit in the second (scope) paragraph.

f. Negative assurance should be expressed on the current year's reviewed financial statements in the second (scope) paragraph.
g. There should be a statement that no opinion is expressed on the current year's financial statements in the second (scope) paragraph.
h. There should be a reference to "conformity with generally accepted accounting principles" in the third paragraph.
i. There should be no restriction on the distribution of the accountant's review report in the third paragraph.
j. There should be no reference to "material modifications" in the third paragraph.
k. There should be an indication of the type of opinion expressed on the prior year's audited financial statements in the fourth (separate) paragraph.
1. There should be an indication that no auditing procedures were performed after the date of the report on the prior year's financial statements in the fourth (separate) paragraph.
m. There should be no reference to "updating the prior year's auditor's report for events and circumstances occurring after that date" in the fourth (separate) paragraph.