1997 NS Finance - 1996-97 Audit Proposal and Contract

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i 12 . 1 ERNST&YOUNG LLP x 787 Seventh Avenue a Phone: 212 773 3000 New York,New York 10019 y Deloitte&Touche LLP We have reviewed the system of quality control for the accounting and auditing practice of Deloitte&Touche LLP(the Firm) in effect for the year ended March 31, 1996. Our review was conducted in conformity with standards for peer reviews promulgated by the Peer Review Committee of the SEC Practice Section of the AICPA Division for CPA Firms (the Section). We tested compliance with the Firm's quality control policies and procedures at the Firm's National office and at selected practice offices in the United States and with the membership requirements of the Section to the extent we considered appropriate. These tests included the application of the Firm's policies and procedures on selected accounting and auditing engagements. We tested the supervision and control of portions of engagements performed outside the United States. In performing our review, we have given consideration-to the general characteristics of a system of quality control as described in quality control standards issued by the AICPA. Such a system should be appropriately comprehensive and suitably designed in relation to the firm's organizational structure, its policies, and the nature of its practice. Variance in individual performance can affect the degree of compliance with a firm's prescribed quality control policies and procedures. Therefore, adherence to all policies and procedures in every case may not be possible. As is customary in a peer review, we are issuing a letter under this date that sets forth comments relating to certain policies and procedures or compliance with them. These matters were not considered to be of sufficient significance to affect the opinion expressed in this report. In our opinion, the system of quality control for the accounting and auditing practice of Deloitte & Touche LLP in effect for the year ended March 31, 1996 met the objectives of quality control standards established by the AICPA, and was being complied with during the year then ended to provide the Finn with reasonable assurance of conforming with professional standards. Also, in our opinion, the Finn was in conformity with the membership requirements of the Section in all material respects. f LLP New York,New York November 25, 1996 Ernst&Young«P is a member of Ernst&Young International,Ltd.