Peer Review 2004

January 13, 2005

To the Owners
Glass, Jacobson & Associates, P.A.

I have review the system of quality control for the accounting and auditing practice of Glass, Jacobson & Associates, P.A. (the firm) in effect for the year ended September 30, 2004. A system of quality control encompasses the firm’s organizational structure, the policies adopted and procedures established to provide it with reasonable assurance conforming with professional standards. The elements of quality control are described in the Statements on Quality Control Standards issued by the American Institute of CPAs (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. My responsibility is to express an opinion on the design of the system of quality control and the firm’s compliance with its system of quality control based on my review.

My review was conducted in accordance with standards established by the Peer Review Board of the AICPA. During my review, I 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 my assessments, I selected engagements and administrative files to test for conformity with professional standards and compliance with the firm’s accounting and auditing practice with emphasis on higher-risk engagements. The engagements selected included, among others, audits of Employee Benefit Plans. Prior to concluding the review, I assessed the adequacy of the scope of the peer review procedures and met with firm management to discuss the results of the review. I believe that the procedures I performed provide a reasonable basis for my opinion.

In performing my review, I obtained an understanding of the system of quality control for the firm’s accounting and auditing practice. In addition, I tested compliance with the firm’s quality control policies and procedures to the extent I considered appropriate. These tests covered the application of the firm’s policies and procedures on selected engagements. My review was based on selective tests therefore it would not necessarily disclose all 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. Projection of any evaluation of a system of quality control to future periods is subject to the risk that the system of quality control may become inadequate because of changes in conditions, or because the degree of compliance with the policies or procedures may deteriorate.

In my opinion, the system of quality control for the accounting and auditing practice of Glass, Jacobson & Associates, P.A. in effect for the year ended September 30, 2004, has been designed to meet the requirements of the quality control standards for an accounting and auditing practice established by the AICPA and was complied with during the year then ended to provide the firm with reasonable assurance of conforming with professional standards.

Claude W. Spiron
Certified Public Accountant
Specializing in Accounting and Auditing Quality Control

1000 Dunning Drive
West Chester, Pennsylvania 19382
610/733-7459
Fax/399-3159

Member of American Institute (Private Companies Practice Section)
Pennsylvania Institute
Delaware Society
Florida Institute of Certified Public Accountants