Miguel, a nonissuer, hired a CPA, to express an opinion directly on the company's internal controls over financial reporting as of December 31, Year 1. The CPA also performed an audit of Miguel's financial statements. A staff associate prepared the draft report in the Draft Report tab and has questions about the correct wording of the report based on the relevant professional standards.

For each of the questions below, select from the list provided the appropriate word or phrase to complete the indicated sentence in the report.

Question 1

We have Question 2 Miguel Co.'s internal control over financial reporting as of December 31, Year 1, based on the control criteria established in "Internal ControlIntegrated Framework" issued by

Question 3. Miguel Co.'s management is responsible for maintaining effective internal control over financial reporting, and for its assertion of the effectiveness of internal control over financial reporting, included in the accompanying "Management's Report on Internal Control." Our responsibility is to express an opinion on Miguel Co.'s internal control over financial reporting based on our examination.

We conducted our Question 4 in accordance with the attestation standards established by the Question 5. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our examination included obtaining an understanding of internal over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our examination also included performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a Question 6 basis for our opinion. An entity's internal control over financial reporting is a process effected by those charged with governance, management, and other personal, designed to provide reasonable assurance regarding the preparation of reliable financial statements in accordance with accounting principles generally accepted in the United States of America. An entity's internal control over the financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the entity;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures of the entity are being made only in accordance with authorizations of management and those charged with governance; and

(3) provide reasonable assurance regarding prevention, or timely detection and correction of unauthorized acquisition, use, or disposition of the entity's assets that could have a material effect on the financial statements. Because of its Question 7, internal control over financial reporting may not prevent, or detect and correct misstatements. Also, projections, of any evaluation of the effectiveness to future periods are subject to the risk that controls may become inadequate because changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. In our opinion, Miguel Co. maintained, in all material respects, effective internal control over financial reporting as of December 31, Year 1, based on "Internal ControlIntegrated Framework" issued by the Question 8.

We also have audited, in accordance with auditing standards generally accepted in the United States of America, the financial statements of Miguel Co. and our report dated February 15, Year 2 expressed an unmodified opinion. Options

1- Auditors report on agreed upon procedure.

2- Registered public accounting firm report.

3- Independent Accountant report.

4- Independent Auditors report.

5- Accountants Report on internal controls.

6- Auditors report on internal controls.