PCAOB Release No. 104-2012-199

Notes Concerning this Report

1. Portions of this rep ort may de scribe deficienc ies or potential d eficiencies in th e systems,

policies, procedures, practices, or conduct of the firm that is the subject of this report.

The inclusion of certain deficiencies and potential deficiencies, however, should not be

construed to support any negative inference that any other aspect of the firm 's systems,

policies, procedures, practices, or conduct is approved or condoned by the Board or

judged by the Boa rd to comp ly with law s, rules, a nd professi onal stan dards.

2. Any references in this report to violations or potential violations of law, rules, or

professional standards are not a result of an adversarial adjudicative process and do not

constitute conclusive findings of fact or of violations for purposes of imposing legal

liability. Similarly, any description herein of a firm's cooperation in addressing issues

constructively should not be construed, and is not construed by the Board, as an

admission, for purposes of potential legal liability, of any violation.

3. Board inspections encompass, among other things, whether the firm has failed to

identify financial statement misstatements, including failures to comply with Securities

and Exchange Commission ("SEC" or "Commission") disclosure requirements, in its

audits of financial statements. This report's descriptions of any such auditing failures

necessarily involve descriptions of the apparent misstatements or disclosure departures.

The Board, however, has no authority to prescribe the form or content of an issuer's

financial statements. That authority, and the authority to make binding determinations

concerning whether an issuer's financial statements are misstated or fail to comply with

Commission disclosure requirements, rests with the Commission. Any description, in this

report, of financial statement misstatements or failures to comply with Commission

disclosure requirements should not be understood as an indication that the Commission

has considered or made any determination regarding these issues unless otherwise

expressly stated.