(AICPA. adapled) LO 2-4 2-3 Simulation Casa Royale, Inca public company retains Ying and Company CPA to audit its financial statements and internal control. Howard Smythe. the partner in charge of the audit, drafted the following unqualified report: Report of Independent Registered Public Accounting Firm (Comment a) To the shareholders and the board of directors (Comment b) of Casa Royale, Inc Opinion on the Financial Statements We have audited the accompanying balance sheets of Casa Royale, Inc. (the "Company") as of December 31, 20X7 and 20X6, the related statements of income, comprehensive income, stockholders' equity, and cash flows, for each of the three years in the per od ended December 31, 20X7, and the related notes collectively referred to as the fin ncial statements In our opinion, the financial statements present fairly in all respects Cmment c the finncal position of the Company as of December 31, 20X7 and 20X6, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 20X7, in conformity with accounting principles generally accepted in the United States of America We also have audited, in accordance with standards of the Public Company Accounting Oversight Board (United States) ("PCAOB' the Company's internal control over financial reporting as of December 31, 20X7, based on Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and our report dated February 12, 20X8 expressed an unqualified opinion Basis for Opinion (Comment d These finoncial statements ore the responsibility of the Company's management. Our responsibility is to express reasonable assurance (Comment e) on the Compony's financial stotements bosed on our audits. We are o public occounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities lows and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. These financial statements are the responsibility of the Company's management. Our responsibility is to cxpress reasonable assurance (Comment e) on the Company's financial stntements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal socurities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with generally accepted auditing standards (Comment ). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of all (Comment g) misstatement, whether due to error or fraud. Our audits included performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the eccounting principles used and significent estimates made by management, as well os evalueting the overall presentation of the financial statements. We believe that our audits provide e reasonable basis for our opinion. procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and Critical Audit Matters The critical audit matters accounts that are material (Comment h) to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1 relate to Ying and Company C PAs Phoenix Arizona (Commentj)