1. Write an audit summary.

2. Challenge the audit opinion: Challenge the basis for an unqualified opinion.

a. Identify areas of concern.

b. Justify your concerns.

Audit Report information needed to complete the template:

Audit firm name: Audit Partners Audit firm location: Boston, Massachusetts Audit Partners has been ABC Electronics auditor since 2019 Date of audit report: February 11, 2023 Company name: ABC Electronics Current audit period ending: December 31, 2022 Comparative statement: December 31, 2021 The audit report also references the audit of the companys internal control over financial reporting as of December 31, 2022, based on criteria established in the Internal Control Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. That audit report, dated February 11, 2023, expressed an unqualified opinion on the company's internal control over financial reporting. Critical audit matters are used to render an opinion. (1) Description The company enters into long-term service agreements within the generator segments. These agreements require the company to provide maintenance services for customer assets over the contract term, which generally range from 5 to 10 years. Revenue for these agreements is recognized using the percentage of completion method, based on costs incurred relative to total estimated costs over the contract term. As part of the revenue recognition process, the company estimates both customer payments that are expected to be received and costs to perform maintenance services over the contract term. Audit Tests Performed Tested amount and timing of revenue recognition of the service agreements Tested the effectiveness of controls over the revenue recognition process for the long-term service agreements, including controls over managements key estimates Evaluated managements risk assessment process through observation of key meetings and processes Tested managements process for estimating the timing and amount of costs associated with maintenance (2) Description The company performs premium testing to assess the adequacy of future insurance reserves on an annual basis or whenever events or changes in circumstances indicate that a premium deficiency event may have occurred. Significant uncertainties exist in testing cash flow projections in the adequacy of the reserves for these insurance contracts. Given the significant judgments made by management in estimating the cash flow projections used in the reserve calculation, a high degree of auditor judgment is required. Audit Tests Performed Involved our actuarial specialists Tested the effectiveness of controls related to controls over the development of key assumptions and managements judgments related to the development of the cash flow projections Tested the underlying data for completeness and accuracy that served as the basis for the actuarial estimates