On September 30, 19X5, White & Co., CPAs, were engaged to audit the consolidated financial statements of National Motors, Inc. for the year ended December 31, 19X5. The consolidated financial statements of National had not been audited the prior year. National’s inadequate inventory records precluded White from forming an opinion as to the proper application of generally accepted ac¬ counting principles to inventory balances on January 1, 19X5. Therefore, White decided not to express an opinion on the results of operations for the year ended December 31, 19X5. National elected not to present comparative financial statements.

Rapid Parts Company, a consolidated subsidiary of National, was audited for the year ended December 31, 19X5, by Green & Co., CPAs. Green completed its field work on February 28, 19X6, and submitted an unmodified report on Rapid’s financial statements on March 7, 19X6. Rapid’s statements reflect total assets and revenues constituting 22 percent and 25 percent, respectively, of the consolidated total of National. White decided not to assume responsibility for the work of Green. Green’s report on Rapid does not accompany National’s consolidated statements.
White completed its field work on March 28, 19X6, and submitted its auditor’s report to National on April 4, 19X6.
Required:
Prepare the White & Co. audit report on the consolidated financial statements of National Motors, Inc.