Page 492 - Auditing Standards

As of December 15, 2017
that the auditor has concluded that a disclaimer of opinion is not appropriate) follows:

Report of Independent Registered Public Accounting Firm

To the shareholders and the board of directors of X Company

Opinion on the Financial Statements

We have audited the accompanying balance sheets of X Company (the "Company") as of December
31, 20X2 and 20X1, the related statements of [titles of the financial statements, e.g., income,
comprehensive income, stockholders' equity, and cash flows] for each of the years then ended, and the
related notes [and schedules] (collectively referred to as the "financial statements"). In our opinion,

except for the effects of the adjustments, if any, as might have been determined to be necessary had we
been able to examine evidence regarding the foreign affiliate investment and earnings, as described
below, the financial statements present fairly, in all material respects, the financial position of the

Company as of December 31, 20X2 and 20X1, and the results of its operations and its cash flows for the
years then ended in conformity with accounting principles generally accepted in the United States of
America.

We were unable to obtain audited financial statements supporting the Company's investment in a
foreign affiliate stated at $_______ and $_______ at December 31, 20X2 and 20X1, respectively, or its

equity in earnings of that affiliate of $_______ and $_______, which is included in net income for the
years then ended as described in Note X to the financial statements; nor were we able to satisfy
ourselves as to the carrying value of the investment in the foreign affiliate or the equity in its earnings by
other auditing procedures.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to
express an opinion on the Company's financial statements based on our audits. We are a public
accounting firm registered with the Public Company Accounting Oversight Board (United States)
("PCAOB") and are required to be independent with respect to the Company in accordance with the

U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.

Except as discussed above, we conducted our audits in accordance with the standards of the PCAOB.
Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement, whether due to error or fraud. Our

audits included performing procedures to assess the risks of material misstatement of the financial

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