For the year ended December 31, 2012, Friday & Co., CPAs ("Friday"), audited the financial statemetns of Kim Company and expressed an unqualified opinion on the balance sheet only. Friday did not observe the taking of the physical invenotry as of December 31, 2011, because that date was prior to its appointment as auditor. Friday was unable to satisfy itself regarding inventory bu means of toher auditing procedures, so it did not express an opinion on the other basic financial statemetns that year.

For the year that ended December 31, 2013, Friday expressed an unqualified opinion on all the basic finacial statements and satified itself as to the consistent application of generally accepted accounting principles. The fieldwork was completed on March 12, 2014; the partner-in-charge reviewd the working papers and signed the auditor's report on March 19, 2014. The report on the comparative financial statements for 2013 and 2012 was delivered to Kim on March 21, 2014.

Required:

Prepare Friday's audit report that was submitted to Kim's board of directors on the 2013 and 2012 comparative financial statements. Kim is a public company. Firday has conducted an audit of Kim's internal controls over financial reporting based on the COSO framework. No material weaknesses were identified.