audit report

15-44      LO 3 The following audit report was drafted by a staff accountant of Turner & Turner, CPAs, at the completion of the audit of the financial statements of Lyon Computers, Inc. (a public company) for the year ended March 31, 2014. It was submitted to the engagement partner, who reviewed matters thoroughly and properly concluded that Lyon’s disclosures concerning its ability to continue as a going concern for a reasonable period of time were adequate, but there is substantial doubt about Lyon being a going concern. Identify the deficiencies contained in the audit report as drafted by the staff accountant. Group the deficiencies by paragraph. Do not redraft the report.

To the Board of Directors of Lyon Computers, Inc.:

We have audited the accompanying balance sheet of Lyon Computers, Inc. as of March 31, 2014,  and the other related financial  statements for the year then ended. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance  with  standards  that  require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are in conformity with generally accepted accounting principles. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note X to the financial statements, the Company has suffered recurring losses from operations and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern. We believe that management’s plans in regard to these matters, which are also described in Note X, will permit the Company to continue as a going concern beyond a reasonable period of time. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.





In our opinion, subject to the effects on the financial statements of such adjustments, if any, as might have been required had the outcome of the uncertainty referred to in the preceding paragraph been known, the finan- cial statements referred to above present fairly, in all material respects, the financial position of Lyon Computers, Inc., and the results of its opera- tions and its cash flows in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year.

Turner & Turner, CPAs April   28,  2014