Page 655 - Auditing Standards

As of December 15, 2017
[The following is an extract from a registration statement that illustrates how an accountant can document

procedures performed on numerous statistics included in the registration statement.]

The following summary is qualified in its entirety by the financial statements and detailed information
appearing elsewhere in this Prospectus.

The Company

ABC Company (the "Company") designs, constructs, sells, and finances single-family homes for the entry-
level and move-up homebuyer. The Company and its predecessor have built and delivered more single-
family homes in the metropolitan area than any other homebuilder for each of the last five years. The

Company delivered 1,000 homes in the year ending December 31, 19X5, and at December 31, 19X5, had
500 homes 13 under contract with an aggregate sales price of approximately $45,000,000. The Company's
wholly owned mortgage banking subsidiary, which commenced operations in March 19X5, currently

originates a substantial portion of the mortgages for homes sold by the Company.

The Company typically does not engage in land development without related homebuilding operations and
limits speculative building. The Company purchases only that land which it is prepared to begin developing
immediately for home production. A substantial portion of the Company's homes are under contract for

sale before construction commences.

The DEF area has been among the top five markets in the country in housing starts for each of the last five
years, with more than 90,000 single-family starts during that period. During the same period, the DEF

metropolitan area has experienced increases in population, personal income, and employment at rates
above the national average. The Company is a major competitive factor in three of the seven market
areas, and is expanding significantly in a fourth area.

The Offering

Stock Offered by the 750,000

Company..................

shares of Common Stock—$.01
par value (the Common Stock") *

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