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    Letter of Representation Proforma

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    Muzzamil Usman
    The document is a template letter of representation from a company's board of directors to its auditors. It contains 14 representations addressing general responsibilities, going concern, laws and regulations, fraud, assets, contingent liabilities, subsequent events, related party transactions, contractual obligations, accounting estimates, and misstatements. The representations confirm that the company has provided full disclosure to the auditors and complied with its responsibilities. An appendix notes relevant ISA requirements for subject-specific representations.

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    Letter of Representation Proforma

    Uploaded by

    Muzzamil Usman
    4K views4 pages
    The document is a template letter of representation from a company's board of directors to its auditors. It contains 14 representations addressing general responsibilities, going concern, laws and regulations, fraud, assets, contingent liabilities, subsequent events, related party transactions, contractual obligations, accounting estimates, and misstatements. The representations confirm that the company has provided full disclosure to the auditors and complied with its responsibilities. An appendix notes relevant ISA requirements for subject-specific representations.

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    Proforma related to management representation letter

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    The document is a template letter of representation from a company's board of directors to its auditors. It contains 14 representations addressing general responsibilities, going concern, laws and regulations, fraud, assets, contingent liabilities, subsequent events, related party transactions, contractual obligations, accounting estimates, and misstatements. The representations confirm that the company has provided full disclosure to the auditors and complied with its responsibilities. An appendix notes relevant ISA requirements for subject-specific representations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    4K views4 pages

    Letter of Representation Proforma

    Uploaded by

    Muzzamil Usman
    The document is a template letter of representation from a company's board of directors to its auditors. It contains 14 representations addressing general responsibilities, going concern, laws and regulations, fraud, assets, contingent liabilities, subsequent events, related party transactions, contractual obligations, accounting estimates, and misstatements. The representations confirm that the company has provided full disclosure to the auditors and complied with its responsibilities. An appendix notes relevant ISA requirements for subject-specific representations.

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    LETTER OF REPRESENTATION PROFORMA

    TO BE TYPED ON CLIENTS LETTERHEAD AND MINUTED


    The letter below is provided as an example of the type of letter to be obtained to confirm the
    management representations provided to the auditor during the course of the audit assignment.
    The letter will require to be amended to reflect the actual representations that are to be confirmed
    in each audit assignment.
    Please refer to appendix 1 of this template to obtain details of specific representations required
    by ISAs (UK and Ireland).
    The letter of representation should be dated the same date as the audit report.

    The Board of Directors,


    Company Name,
    Address

    Dear Sirs/Madams,
    We confirm to the best of our knowledge and belief, and having made appropriate enquiries of other directors and
    officials of the company, the following representations given to you in connection with your audit of the financial
    statements for the period ended 200X.
    GENERAL
    1. We acknowledge as directors, our responsibilities under the Companies Acts (1963 to 2013) for preparing
    financial statements which give a true and fair view and for making accurate representations to you. All the
    accounting records have been made available to you for the purpose of your audit and all the transactions
    undertaken by the company have been properly reflected and recorded in the accounting records. All other
    records and related information, including minutes of all management, directors and shareholders
    meetings, have been made available to you.
    GOING CONCERN
    2. We believe that it is appropriate for the companys financial statements to have been prepared on a going
    concern basis and that no further disclosures relating to the companys ability to continue as a going
    concern need to be made in the financial statements other than any such disclosures made in the financial
    statements presented to you for audit.

    LAW AND REGULATIONS


    3. We are not aware of any breaches or possible breaches of statute, regulations, contracts, agreements or the
    companys Memorandum and Articles of Association which might prejudice the companys going concern
    status or that might result in the company suffering significant penalties or other loss. No allegations of such
    breaches have come to our notice. There have been no communications from regulatory agencies
    concerning non-compliance with or deficiencies in the companys regulatory obligations. There are no
    violations or possible violations of laws or regulations whose effects should be considered for disclosure in
    the financial statements or as a basis for recording a loss contingency.

    FRAUD
    4. We acknowledge our responsibility for the design and implementation of internal control to prevent and
    detect fraud. We confirm that we have disclosed to you the results of our assessment of the risk that the
    financial statements of the company may be materially misstated as a result of fraud. We also confirm that
    we have disclosed to you our knowledge of fraud or suspected fraud, if any, involving management,
    employees who have significant roles in internal control and others where the fraud is material. We also
    confirm that we have disclosed to you our knowledge of any allegations of fraud, or suspected fraud,
    affecting the entitys financial statements that have been communicated by employees, former employees,
    analysts, regulators or others.
    TITLE
    5. The company has satisfactory title to all owned assets, and there are no liens or encumbrances on such
    assets nor has any asset been pledged as collateral that were not disclosed in the notes to the financial
    statements.
    CONTINGENT LIABILITIES
    6. There are neither contingent liabilities, nor any litigation pending or outstanding against the company other
    than those disclosed in the notes to the financial statements presented to you for audit.
    POST BALANCE SHEET EVENTS
    7. There have been no events since the balance sheet date which necessitate revision of the figures included
    in the financial statements or inclusion of a note thereto. Should further material events occur, which may
    necessitate revision of the figures included in the financial statements or inclusion of a disclosure note
    thereto, we will advise you accordingly.
    LOANS AND ARRANGEMENTS
    8. The company has not had nor entered into at any time during the year, any arrangement, transaction or
    agreement to provide credit facilities (including loans, quasi-loans or credit facilities) for directors nor to
    guarantee or provide security for such matters other than any such loans and arrangements disclosed in the
    notes to the financial statements presented to you for audit.
    TRANSACTIONS WITH RELATED PARTIES
    9. All transactions with related parties have been disclosed in the financial statements. We have made
    available to you all relevant information concerning such transactions and are not aware of any other
    matters which require disclosure.
    CONTRACTUAL OBLIGATIONS
    10. The company has complied with all aspects of contractual agreements that would have a material effect on
    the financial statements in the event of non-compliance.
    PUBLIC FUNDING
    11. The company has complied with all obligations imposed on it by funding agencies that have provided the
    company with funding. We have made available to you all relevant agreements, reports, correspondence
    and information concerning such funding. There have been no communications or indications from funding
    agencies concerning non-compliance with or deficiencies in the companys obligations under such funding
    agreements. We are not aware of any circumstance that could create an obligation for the company to repay
    funding received in the past.

    EVALUATION OF MISSTATEMENTS IDENTIFIED DURING THE AUDIT


    12. The effects of uncorrected misstatements are immaterial, both individually and in the aggregate, to the
    financial statements as a whole.

    ACCOUNTING ESTIMATES, AND RELATED DISCLOSURES


    13. Significant assumptions used by us in making accounting estimates, including those measured at fair value,
    are reasonable.

    COMPARATIVE
    STATEMENTS

    INFORMATIONCORRESPONDING

    FIGURES

    AND

    COMPARATIVE

    FINANCIAL

    14. This would only be required where a restatement is made in respect of a material misstatement in
    the prior year accounts that impact the comparative. This representation would have to be drafted to
    meet the specific situation arising.
    We confirm that the above representations are made on the basis of enquiries of management and staff with
    relevant knowledge and experience (and, where appropriate, of inspection of supporting documentation) sufficient to
    satisfy ourselves that we can properly make each of the above representations to you.

    Yours faithfully,

    ON BEHALF OF THE BOARD OF DIRECTORS OF XYZ LIMITED

    ..DIRECTOR

    APPENDIX 1 - NOTE TO FIRMS DRAFTING REPRESENTATION LETTERS


    An appendix to ISA (UK and Ireland) 580 Written representations identifies paragraphs in other ISAs (UK and
    Ireland) in effect for audits of financial statements for periods ending on or after 15 December 2010 that require
    subject- matter specific written representations. The list is not a substitute for considering the requirements and
    related application and other explanatory material in ISAs (UK and Ireland). In each audit assignment consideration
    should be given to these requirements when drafting an appropriate letter of representation.
    1. ISA 240 (UK and Ireland), "The Auditor's Responsibilities Relating to Fraud in an Audit of Financial
    Statements" paragraph 39
    2. ISA 250 (UK and Ireland), "Consideration of Laws and Regulations in an Audit of Financial Statements"
    paragraph 16
    3. ISA 450 (UK and Ireland), "Evaluation of Misstatements Identified during the Audit" paragraph 14
    4. ISA 501 (UK and Ireland), "Audit EvidenceSpecific Considerations for Selected Items" paragraph 12
    5. ISA 540 (UK and Ireland), "Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and
    Related Disclosures" paragraph 22
    6. ISA 550 (UK and Ireland), "Related Parties" paragraph 26
    7. ISA 560 (UK and Ireland), "Subsequent Events" paragraph 9
    8. ISA 570 (UK and Ireland), "Going Concern" paragraph 16(e)
    9. ISA 710 (UK and Ireland), "Comparative InformationCorresponding Figures and Comparative Financial
    Statements" paragraph 9

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