Below is a part of the auditors report drafted by a staff accountant of Williams & Co., CPAs, at the completion of the audit of the financial statements of Lenz Corporation (nonpublic company) for the year ended December 31, 20X1. Assume that there is substantial doubt about the entitys ability to continue as a going concern and that this doubt is properly disclosed in the financial statements.

Emphasis-of-MatterGoing Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note X to the financial statements, the Company has suffered recurring losses from operations, has a net capital deficiency, and has stated that substantial doubt exists about the Companys ability to continue as a going concern beyond a reasonable period of time. Managements evaluation of the events and conditions and managements plans regarding these matters also are described in Note X. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to this matter.

Opinion

We have audited the financial statements of Lenz Corporation and the related notes to the financial statements.

In our opinion, except for the effects of the matter described in the preceding paragraph the accompanying financial statements present fairly, in all material respects, the financial position of Lenz Corporation, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America applied on a basis consistent with the preceding year.

Basis for Opinion

We conducted our audit in accordance with accounting standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the Financial Statements section of our report. We are independent of Lenz Corporation in accordance with ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

A. Identify deviations from the appropriate nonpublic company audit report.