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Planning the Review for the Firm's Accounting and Auditing Practice Applicable to <br /> Non-SEC Issuers <br /> To plan the review of Larson, Allen, Weishair & Co., LLP, we obtained an <br /> understanding of (1) the nature and extent of the firms accounting and auditing <br /> practice, and (2) the design of the firm's system of quality control sufficient to assess the <br /> inherent and control risks implicit in its practice. Inherent risks were assessed by <br /> obtaining an understanding of the firm's practice,such as the industries of its clients and <br /> other factors of complexity in serving those clients, and the organization of the firm's <br /> personnel into practice units.Control risks were assessed by obtaining an understanding <br /> of the design of the firms system of quality control, including its audit methodology <br /> and monitoring procedures. Assessing control risk is the process of evaluating the <br /> effectiveness of the reviewed firms system of quality control in preventing the <br /> performance of engagements that do not comply with professional standards. <br /> Performing the Review for the Firm's Accounting and Auditing Practice Applicable to <br /> Non-SEC Issuers <br /> Based on our assessment of the combined level of inherent and control risks, we <br /> identified practice units and selected engagements within those units to test for <br /> compliance with the firm's system of quality control. The engagements selected for <br /> review included engagements performed under the Government Auditing Standards, <br /> audits performed under FDICIA, multi-office audits, and audits of Employee Benefit <br /> Plans. The engagements selected for review were to represent a cross-section of the <br /> firms accounting and auditing practice with emphasis on higher-risk engagements. The <br /> engagement reviews included examining working paper files and reports and <br /> interviewing engagement personnel. <br /> The scope of the peer review also included examining selected administrative and <br /> personnel files to determine compliance with the firms policies and procedures for the <br /> elements of quality control pertaining to independence, integrity, and objectivity; <br /> personnel management; and acceptance and continuance of clients and engagements. <br /> Prior to concluding the review, we reassessed the adequacy of scope and conducted a <br /> meeting with firm management to discuss our findings and recommendations. <br />