Identify the errors and omissions in the auditors report as drafted by the staff auditor. (in 150 words or more)

OLO 18-1, 18-818-28 The following auditor's report was drafted by a staff accountant of Nathan and Matthew, CPAs, at the completion of the audit of the comparative financial statements of Monterey for the years ended December 31, 2018 and 2017. The report was submitted to the engagement partner, who reviewed matters thoroughly and properly concluded that an unmodified opinion should be expressed. The draft of the report prepared by an inexperienced staff auditor is as follows: Auditor's Report We have audited the accompanying financial statements of Monterey, which comprise the statements of assets, liabilities, and capital as of December 31, 2018, and the related statement of revenue and expenses for the year then ended, and the related notes to the financial statements. We conducted our audit in accordance with standards established by the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. An audit also includes evaluating the appropriateness of accounting policies used as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities, and owners' equity of Monterey as of December 31, 2018, and its revenue and expenses for the year then ended in conformity with generally accepted accounting principles applied on a consistent basis. Critical Audit Matters There were no critical audit matters. Nathan and Matthew, CPAS April 3, 2019 Required: Identify the errors and omissions in the auditor's report as drafted by the staff auditor. (AICPA, adapted)