The following audit report is deficient in several respects.

Required:

You are to criticize the report systematically from beginning to end, considering each sentence in turn. Use a separate paragraph with identifying heading for each point, as for example, Paragraph 1, Sentence 1. You may also wish to make comments on the overall contents of each paragraph and upon any omissions. Give reasons to support your views. After completing this critical review of the report, draft a revised report, on the assumption that your audit was adequate in all respects and dis- closed no significant deficiencies.

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To Whom It May Concern: We have examined the accounting records of Garland Corporation for the year ended June 30, 20X1. We counted the cash and marketable securities, studied the accounting methods in use (which were consistently followed throughout the year), and made tests of the ledger accounts for assets and liabilities. The internal control contained no weaknesses. In our opinion the accompanying balance sheet and related income statement present cor- rectly the financial condition of the Corporation at June 30, 20X1. The accounting records of Garland Corporation are maintained in accordance with ac- counting principles generally observed throughout the industry. Our examination was made in accordance with generally accepted auditing standards, and we certify the records and finan- cial statements without qualification.