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I I I I I I I I I I I I I I I I I I I AJeK Abbott, JordanG&Koon, LLC CERTIFIED PUBLIC ACCOUNTANTS To the Partners Keefe, McCullough & Co., LLP P,O. Box 6090405 Second Street 0 Manchester, GA31816 (706) 846-8401 0 Fax (706) 846-3370 We have reviewed the system of quality control for the accounting and auditing practice of Keefe, McCullough & CO" LLP (the firm) in effect for the year ended August 31, 2005. A system of quality control encompasses the firm's organizational structure and the policies adopted and procedures established to provide it with reasonable assurance of conforming with professional standards. The elements of quality control are described in the Statements on QU2lity Co!:tro! St2nc2rds issl..!ed by the AtT!erican !~stitute of C8rtifisd Public Accountants (AICPA). The firm is responsible for designing a system of quality control and complying with it to provide the firm reasonable assurance of conforming with professional standards in all material respects. Our responsibility is to express an opinion on the des;~J/l of the system of quality control and the firm's compliance with its system of quality control based on our review. Our review was conducted in accordance with standards established by the Peer Review Board of the AICPA. During our review, we read required representations from the firm, interviewed firm personnel and obtained an understanding of the nature of the firm's accounting and auditing practice, and the design of the firm's system of quality control sufficient to assess the risks implicit in its practice. Based on our assessments I we selected engagements and administrative files to test for conformity with professional standards and compliance with the firm's system of quality control. The engagements selected represented a reasonable cross-section of the firm's accounting and auditing practice with emphasis on higher-risk engagements. (The engagements selected included among others, audits of Employee Benefit Plans and engagements performed uncler Government Auditing Standards. Prior to concluding the review, we reassessed the adequacy of the scope of the peer review procedures and met with firm management to discuss the results of our review. We believe that the procedures we performed provide a reason8h1e basis for our opinion. In performing our review, we obtained an understanding of the system of quality control for the firm's accounting and aud.iting practice. In addition, we tested compliance with the firm's quality control policies and procedures to the extent we considered appropriate. These tests covered the application of the firm's policies and procedures on selected engagements. Our review was based on selected tests therefore it would not necessarily detect ClII weaknesses in the system of quality control or all instances of noncompliance with it. There are inherent limitations in the effectiveness of any system of quality control and therefore noncompliance with the system of quality control may occur and not be detected. PrCljection of any evaluation of a system of quality control to future periods is subject to the ri~k that the system of quality control may become inadequate because of changes in conrliticns, or because the degree of compliance with the policies or procedures m,IY deteriorate. MEMBERS OF PRIVATE COMPANIES PPACTICE SECTION OF THE AMERICAN INSTiTUTE OF CERTIFIED PUBLIC ACCOUNTANTS GEORGIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS