During the audit of the annual financial statements of Amis Manufacturing Inc., the company’s president, Vance Molar, and Wayne Dweebins, the engagement partner, reviewed matters that were supposed to be included in a written representation letter. Upon receipt of the following representation letter, Dweebins contacted Molar to state that it was incomplete.
To John & Wayne, Public Accountants: In connection with your examination of the balance sheet of Amis Manufacturing Inc., as of December 31, 20X2, and the related statements of income, retained earnings, and cash flows for the year then ended, for the purpose of expressing an opinion on whether the financial statements present fairly the financial position, results of operations, and cash flows of Amis Manufacturing Inc., in conformity with generally accepted accounting principles, we confirm, to the best of our knowledge and belief, the following representations made to you during your audit. The following were not present:
• Plans or intentions that may materially affect the carrying value or classification of assets or liabilities
• Communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices
• Agreements to repurchase assets previously sold
• 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
• Unasserted claims or assessments that our lawyer has advised are probable and that must be disclosed in accordance with Canadian GAAP
• Capital stock purchase options or agreements or capital stock reserved for options, warrants, conversions, or other requirements
• Compensating balance or other arrangements involving restrictions on cash balances
Vance Molar, President
Amis Manufacturing Inc.
March 14, 20X3

Identify the other matters that Molar’s representation letter should specifically confirm.

  • CreatedJanuary 09, 2015
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