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JAN 18 1984 *K 55 PAS 862 Mr. Testone gave a brief resume of his education, stating that he is a CPA licensed by the State of New York and has been in practice 18 years, during a portion of which time he worked with Price Waterhouse. Attorney Micale presented Mr. Testone with Intervener's Exhibit #8, letter from Testone, Marshall & Discenza in regard to their review of the accompanying Statement of Financial Position of Hutchinson Utilities, Inc., as of December 31, 1981, and asked Mr. Testone why he disclaimed a financial statement regarding 1981. Mr. Testone stated that basically their report followed their engagement to prepare a report under what is known as a review, which is a non -audited statement. The Exhibit referred to is their report under that scope of service. Chairman Scurlock noted that they are not testifying to the actual veracity of the figures. Mr. Testone explained that they took management figures and put them into proper form for a presentation. A review does involve some analytical procedures, but does not involve confirming accounts; it is not an audit. If they become aware under the scope of this engagement of any material departures from any generally accepted accounting principles, it is their obligation to report such disclosure. Attorney Micale then showed Mr. Testone Intervener's Exhibit #1, a copy of the financial statement of Hutchinson Utilities for the year ended December 31, 1982, and cover letter of Testone, Marshall & Dicenza giving their report on the financial statement. He asked Mr. Testone whether they express an opinion in that report and whether it is an unqualified opinion and also requested that he clarify their statement re generally accepted accounting principles. Mr. Testone explained the scope of their examination and reiterated that they would be obligated to explain any 57 I C-