Question: Casa Royale, Inc., a public company, retains
Casa Royale, Inc., a public company, retains Ying and Company CPA to audit its financial statements and internal control. Howard Smythe, the partner in charge of the audit, drafted the following unqualified report: 
Respond as to the accuracy of the following comments made by a reviewer of the report: 
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Report of Independent Registered Public Accounting Firm (Comment a) To the shareholders and the board of directors (Comment b) of Casa Royale, Inc. Oplnion on the Financial Statements We have audited the accompanying balance sheets of Casa Royale, Inc. (the "Company) as of Decem- ber 31, 20X7 and 20X6, the related statements of Income, comprehensive Income, stockholders' equity. and cash flows, for each of the three years In the perlod ended December 31, 20X7, and the related notes (collectively referred to as the "financlal statements"). In our opinion, the flnanclal statements present falrly, In all respects (Comment c), the financlal position of the Company as of December 31, 20X7 and 20X6, and the results of Its operations and its cash flows for each of the three years in the perlod ended December 31, 20X7, In conformity with accounting principles generally accepted In the United States of America We also have audited, In accordance with standards of the Public Company Accounting Oversight Board (United States) ("PCAOB") the Company's Internal control over financial reporting as of Decem- ber 31, 20X7, based on Internal Control-Integrated Framework Issued by the Committee of Sponsoring Organizatlons of the Treadway Commisslon (COSO) and our report dated February 12, 20X8 expressed an unqualifled opinion. Basis for Opinion (Comment d) These financlal statements are the responsibility of the Company's management. Our responsibility Is to express reasonable assurance (Comment e) on the Company's financlal statements based on our audits. We are a public accounting filrm registered with the PCAOB and are requlred to be Independent with respect to the Company In accordance with the U.S. federal securitles laws and the applicable rules and regulations of the Securitles and Exchange Commisslon and the PCAOB. We conducted our audits In accordance with generally accepted auditing standards (Comment f). Those standards require that we plan and perform the audit to obtaln reasonable assurance about whether the financlal statements are free of all (Comment g) misstatement, whether due to error or fraud. Our audits Included performing procedures to assess the risks of materlal misstatement of the financlal statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures Included examining, on a test basis, evidence regarding the amounts and dis- closures In the financlal statements. Our audits also Indluded evaluating the accounting prindples used and significant estimates made by management, as well as evaluating the overall presentation of the financlal statements. We belleve that our audits provide a reasonable basis for our opinlon. Critical Audit Matters The critical audit matters communicated below are matters arlsing from the current perlod audit of the financlal statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts that are materlal (Comment h) to the financial statements and (2) Involved our especlally challenging, subjective, or complex Judgments. The communication of critical audit matters does not alter In any way our opinilon on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinlons on the critical audit matters or on the accounts or disclosures to which they relate. Ying and Company CPAS (Comment /) Phoenlx Arizona (Comment) Comment Is Reviewer's Comments Correct (yes or no) a. The report should not Include the word "Registered." b. The report must also be addressed to management. c. The report should say In "all materlal respects." d. The basis for opinion sectlon should precede the oplnlon sectlon. Comment Is Reviewer's Comments Correct (yes or no) e. "Reasonable assurance" should be replaced by "an oplnlon." f. "Generally accepted auditing standards" should be replaced by "the standards of the PCAOB." g. "All" should be replaced by "materlal." h. "Accounts that are materlal" should be replaced by "accounts or disclo- sures that are materlal." I. "Ying and Company" should be replaced with "Howard Smythe," the engagement partner. J. The report should Include a statement of when the firm began serving as the corporatlon's auditor.
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