Peters, CPA, has completed the audit of the financial statements of XYZ Corporationn as of and for the year ended December 31, 2007. Peters also audited ad reported on the XYZ financial statements for the prior year. Peters drafted the following report for 2007. "We have audited the balance sheet d statements of income and retained earnings of XYZ Corporation as of December 31, 2007. We conducted our audit in accordance with GAAS