White & Black, CPAs has been requested to perform a limited reporting engagement. The auditing firm has been asked by Brown, Inc. (a public company) to audit and express an opinion on the balance sheet only. The engagement partner has requested your assistance in determining if this type of audit report is allowed. If so, the engagement partner has requested that you draft a sample report for an unqualified opinion.

A. Research the accounting situation using the PCAOB Auditing Standard and submit a research memo:

1. Use the PCAOB Auditing Standards (AS) to determine if this type of report is allowed.
2. Develop an Accounting Research Memo that answers the question.

a) Make sure to include specific AS reference(s) that supports your conclusion, and include in your memo a draft of the sample report.