Following is the auditor’s opinion expressed on the financial statements of Kleen-ware, Inc.:

AN AUDITOR’S REPORT The Board of Directors Kleen-ware, Incorporated and Subsidiaries (the Company)

We have audited the accompanying consolidated balance sheets of Kleen-ware, Inc. and subsidiaries (the company) as of December 31, 1997 and 1998, and the related consolidated statements of income, changes in shareholders’equity, and cash flows for years then ended. These financial statements are the responsibility of the company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the 1997 and 1998 financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Company at December 31, 1997 and 1998, and the consolidated results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

Max Ernst & Company Milwaukee, Wisconsin February 14, 1999 Required Review the following auditor’s opinion. Identify the specific sentence indicating the auditor’s opinion. What other useful information is shown in this opinion?

Why is it useful? p-968