On page 29 is an actual auditor's report rendered in 1927 by Touche, Niven & Co., on the financial statements of The Studebaker Corporation. 

1 Explain what representations are made by the auditor. 

2 What implications might a reader of this opinion draw from the dollar amounts included in the report?

Data from Page 29

Transcribed Image Text:

TOUCHE, NIVEN & CO. PUBLIC ACCOUNTANTS NEW YORK, CHICAGO, CLEVELAND, ST. LOUIS, MINNEAPOLIS. LOS ANGELES AND ATLANTA 10 South LaSalle St. Chicago, February 2, 1927. To the Board of Directors, The Studebaker Corporation, South Bend, Indiana. Gentlemen: We have audited the books and accounts of The Studebaker Corporation and subsidiary companies for the year ended December 31, 1926, and hereby certify that the statements submitted by us are correctly prepared therefrom. The notes receivable, cash on hand and on deposit and securities at the Home Office have been verified by examination or by certificates from the custodians. Full provision has been made for the anticipated loss on collection of accounts and notes receivable.