LETTER OF REPRESENTATION
( Letterhead of Client)
24th September 2009
_____ & Co
Chartered Accountants
32 A, Sir ____ ______ Mawatha
P.O. Box 236
Colombo 05.
Dear Sirs,
LETTER OF REPRESENTATION
_______ ______ CO. LTD
AUDIT FOR THE YEAR ENDED 31ST MARCH 2009
This representation letter is provided in connection with your audit of the financial statements of ______ ______ Co. Ltd Plan No. 4378 (“the ”) for the year ended 31st March 2009, for the purpose of expressing an opinion as to whether these financial statements ‘give a true and fair view’ in accordance with Statement of Recommended Practice for Not-for-Profit-Organisations (SoRP - NPOs)
We confirm that the representations we make in this letter are in accordance with the definitions set out in the Appendix to this letter.
We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves:
Financial Statements
1. We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated 09th July 2009, for the preparation of financial statements that give a true and fair view in accordance with SoRP-NPO.
2. Measurement methods and significant assumptions used by us in making accounting estimates, including those measured at fair value are reasonable.
3. All events subsequent to the date of the financial statements and for which SoRP-NPO require adjustment or disclosure have been adjusted or disclosed.
4. In respect of the restatement of statement of income and expenditure made to correct a material misstatement in the prior period financial statements in respect of members’ contribution to be reflected on the statement of income and expenditure, we confirm that the restatement is appropriate in accordance with the SoRP-NPO.
Information Provided
5. We have provided you with:
· Access to all information of which we are aware that is relevant to the preparation of the financial statements, such records, documentation and other matters;
· Additional information that you have requested from us for the purpose of the audit; and
· Unrestricted access to persons within the Corporation from whom you determined it necessary to obtain audit evidence.
6. All transactions have been recorded in the accounting records and are reflected in the financial statements. We acknowledge our responsibility for such internal control as we determine necessary for the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In particular, we acknowledge our responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud and error.
7. We confirm the following:
i) We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud.
Included in the Appendix to this letter are the definitions of fraud, including misstatements arising from fraudulent financial reporting and from misappropriation of assets.
ii) We have disclosed to you all information in relation to:
a) There have been no instances of fraud or suspected fraud that we are aware of and that affects the corporation and involve:
· management;
· employees who have significant roles in internal control; or
· others where the fraud could have a material effect on the financial statements.
b) There have been no instances of allegations of fraud, suspected fraud, affecting the Corporation’s Financial Statements communicated by employees, former employees, analysts, regulators or others.
In respect of the above, we acknowledge our responsibility for such internal control as we determine necessary for the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In particular, we acknowledge our responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud and error.
8. There have been no known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing the financial statements. Further, we have disclosed to you and have appropriately accounted for and/or disclosed in the financial statements in accordance with SoRP-NPO all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements.
9. We have disclosed to you the identity of the Corporation’s related parties and all the related party relationships and transactions of which we are aware and all related party relationships and transactions have been appropriately accounted for and disclosed in accordance with SoRP-NPOs.
Included in the Appendix to this letter are the definitions of both a related party and a related party transaction as we understand them and as defined in SoRP-NPO 6.19.
10. We do not have any liabilities or contingencies, as disclosed in Note 21 of the Financial Statements.
11. The carrying amounts of property plant and equipment and, are reviewed at balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the assets recoverable amounts are estimated.
12. We have made an assessment of the Corporation’s ability to continue as a going concern taking in to account all available information about the future, which under SoRP-NPO 6.1 Presentation of Financial Statements is at least, but is not limited to, twelve months from the end of the reporting period. We confirm that we are not aware of material uncertainties related to events or conditions that may cast significant doubt upon the Corporation’s ability to continue as a going concern.
13. We have identified each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item and depreciated each item separately in accordance with SoRP-NPO 6.9, Property, Plant and Equipment. Further, the Corporation’s consultant engineer has reviewed the estimated useful life of the Property, Plant and Equipment and arrived at the best useful life which was applied from 1st April 2009 to depreciate the Property, Plant & Equipment.
14. There are no:
(a) Other gain or loss contingencies or other liabilities that are required to be recognized or disclosed in the financial statements, including liabilities or contingencies arising from environmental matters resulting from illegal or possibly illegal acts, or possible violations of human rights legislation; or
(b) Other environmental matters that may have a material impact on the financial statements.
15. We have no plans or intentions that may materially alter the carrying value or classification of assets and liabilities reflected in the financial statements. We believe that the carrying amounts of all material assets will be recoverable.
16. The Corporation has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets.
17. The receivables reported in the financial statements represent valid claims against debtors for rental or other charges arising on or before the balance sheet date and appropriate provisions have been made for losses that may be sustained on uncollectible receivables.
18. No loans have been granted to council members by the corporation.
19. We confirm that there are no assessments raised on the Corporation for Income Tax, VAT, NBT or PAYE or any other taxes.
20. We confirm the rent agreement between corporation and Colombo Land & Development Co, for the car park upper deck and increased monthly rent are based on the market values.
21. We confirm there is no pending litigation or claim against the corporation.
22. The Corporation has complied with all aspects of contractual agreements that could have a material effect on the financial statements in the event of non-compliance.
23. There have been no events subsequent to the balance sheet date which require adjustment of or disclosure in, the financial statement or notes thereto.
24. We confirm that we have assessed the recoverability of debtors and the balance outstanding debtors can be recovered in near future.
25. We confirm that the disclaimer of opinion issued by the previous auditor was made on lack of information regarding VAT receivable, Ceylon Electricity Board deposit, Inter balance difference and the recoverability of dues. We agreed to rectify the continuing issues from 2009 in next year.
Yours truly,
[President]
[Treasure
No comments:
Post a Comment