1. The following tentative auditor's report was drafted by a staff accountant and submitted to a partner to the accounting firm for review. As the partner, identify at least 5 deficiencies in the staff accountant's tentative report that constitute departures from the generally accepted auditing standards.

AUDIT REPORT

To the Audit Committee of Best Company in the World

We have examined the consolidated balance sheets of the Best Company in the World and subsidiaries as of December 31, 2021, and 2020 and the related consolidated statements of income, retained earnings, and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

Our audits were made in accordance with auditing standards generally accepted in the United States of America as we considered necessary in the circumstances. Other auditors audited the financial statements of certain subsidiaries and have furnished us with reports thereon containing no exceptions. Our opinion expressed herein, insofar as it relates to the amounts included for those subsidiaries is based solely upon the reports of the other auditors.

As fully discussed in Note 7 to the financial statements in 2021, the company extended the use of the last in, first out (LIFO) method of accounting in include all inventories. In examining inventories, we engaged Dr. Accountant (Nobel Prize Winner 2020) to test check the technical requirements and specifications of certain items of reequipments manufactured by the company.

In our opinion, the financial statements referred to above present fairly the financial position of Best Company in the World as of December 31, 2021, and the results of operations for the years then ended, in conformity with accounting principles generally accepted in the United States of America.