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SIGNATURE ROBERT W. CURTIN
TITLE SECRETARY
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and
Board of Directors
Morgan FunShares, Inc.
We have audited the accompanying statement of assets and liabilities of Morgan
FunShares, Inc., including the schedule of portfolio investments, as of December
31, 1996, and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the periods then
ended, and financial highlights for each of the two years in the period then
ended and for the period from June 22, 1994 (commencement of operations) to
December 31, 1994. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments and cash held by
the custodian as of December 31, 1996, by correspondence with the custodian. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Morgan
FunShares, Inc. as of December 31, 1996, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
periods then ended, and the financial highlights for each of the two years in
the periods then ended and for the period from June 22, 1994 (commencement of
operations) to December 31, 1994, in conformity with generally accepted
accounting principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio 44145
January 15, 1997
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