The auditors' report below was drafted by a staff accountant of Williams & Co., CPAs, at the completion of the audit of the financial statements of Lenz Corporation for the year ended March 31, 20X9. It was submitted to the engagement partner, who reviewed matters thoroughly and properly concluded that Lenz's disclosures concerning its ability to continue as a going concern for a reasonable period of time were adequate.

Required:

Identify the deficiencies contained in the auditors' report as drafted by the staff accountant. Group the deficiencies by paragraph.

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INDEPENDENT AUDITORS' REPORT To the Board of Directors of Lenz Corporation: We have audited the accompanying balance sheet of Lenz Corporation, as of March 31, 20X9, and the related financial statements for the year then ended. Our responsibility is to ex- press an opinion on these financial statements based on our audit. We conducted our audit in accordance with standards that require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are in conform- ity with generally accepted accounting principles. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also in- cludes assessing the accounting principles used and significant estimates made by management. plans in regard to these matters, which are also described in Note X, will permit the Company to continue as a going concern beyond a reasonable period of time. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. In our opinion, subject to the effect on the financial statements of such adjustments, if any, as might have been required had the outcome of the uncertainty referred to in the preceding paragraph been known, the financial statements referred to above present fairly, in all material respects, the financial position of Lenz Corporation and the results of its operations and its cash flows in conformity with generally accepted accounting principles applied on a basis consis- tent with that of the preceding year. Williams & Co., CPAs April 28, 20X9