The City of Snohomish receives grants from various state agencies as well as grants from serveral federal government agencies. The City engaged a CPA firm to audit its financial statements for the year ended July 31, 20X5, in acc ourdance with Government Auditing Standards. Accordingly, the auditor's reports are to be submitted by the City to granting government agencies, which make the reports available for public inspection.

REQUIRED: For each the statements attached, indicate whether each is an appropriate or inappropriate element within the report on compliance with laws and regulations. If a statement is not appropriate, Explain why.

The auditor's separate report on compliance with laws and regulations that was drafted by a staff accountant at the completion of the engagement contained the statements below. It was submitted to the engagement partner who reviewed matters thoroughly and properly concluded that no material instances of noncopliance were identified.

(1)	A statement that the audit was conducted in accordance with generally accepted auditing standards and with Government Auditing Standards issued by the Comptroller General of the United States.
(2)	A statement that the auditor's procedures included tests of compliance.
(3)	A statement that the standards require the auditors to plan and to perform the audit to detect all instances of noncompliance with applicable laws and regulations.
(4)	A statement that management is responsible for compliance with laws, regulations, contracts, and grants.
(5)	A statement that the auditor's objective was to provide an opinion on compliance with the provisions of laws and regulations regulation equivalent to that to be expressed on the financial statements.
(6)	A statement of positive assurance that the results of the tests indicate that, with repect to the items tested, the entity complied, in all material respects, with the provisions of laws, regulations, contracts, and grants.
(7)	A statement of negative assurance that, with respect to items tested, nothing came to the auditors' attention that caused the auditors to believe that the entity had not complied, in all material respects, with the provisions of laws, regulations, contracts, and grants.
(8)	A statement that the report is intended only for the information of the specific legislative or regulatory bodies, and that this restriction is intended to limit the distribution of the report.