Identify the errors in the following auditors report:

REPORT

To the management of

ABC Company

Report on the Financial Statements

We have audited the accompanying financial statements of ABC Company.

Auditor's Responsibility

Our responsibility is to determine the accuracy of these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted accounting principals. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain absolute assurance about whether the financial statements are free from material misstatement.

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted auditing standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, due to error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes concluding on the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management.

Opinion

The financial statements present fairly, in all material respects, the financial position of ABC Company as at December 31, 2012, and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

February 3, 2013