PRAIRIE TECHNOLOGY PARTNERS Planning Memo December 31, 2011

We have been retained as continuing auditors for Prairie Technology Partners (PTP) for the year ending December 31, 2011

Engagement Objectives

* Provide our report on the examination of PTP's financial statements by February 5, with year-end fieldwork to begin January 14, 2012 * Issue our management letter comments by February 10, 2012
Preliminary Analytical Review

Briefly describe the results of your analytical procedures. Print this memo as an outline, then compose your answers as attachments in your wordprocessor. Describe any unusual or unexpected relationships
Summary of Risks of Material Misstatement

Based on your review of the permanent file, the financial statements, and discussions with management, briefly summarize the risks of material misstatement you have identified and your suggested response.
The following is a list of risks for material misstatements that have been identified: * Inadequate segregation of duties * Operations exposed to volatile markets of technology prices * Undisclosed related party transactions * Weakness in internal controls * Past misstatements and adjustments at period end * Pending litigation * Transaction that result in significant measurement uncertainty * Viruses in the computer system

Audit Strategy

Based on our review of PTP's business and its controls we have decided on a preliminary audit approach. Considering inherent and control risks factors and the economics of the engagement, we have decided on a full substantive testing approach. Please review the following strategy and indicate in the audit program if you are in agreement with this approach or not.

Revenue Cycle:
Test of controls Although it appears that the controls in general are adequate in this area, we are not planning to rely on them since there is inadequate segregation of duties and the time it would take to test them would exceed the savings in substantive tests.

Substantive tests Substantive