Question: During the examination of the annual financial statements of Amis

During the examination of the annual financial statements of Amis Manufacturing, Inc., a nonpublic company, the company’s president, R. Heinrich, and Luddy, the auditor, reviewed the matters that were to be included in a written representation letter. Upon receipt of the following entity representation letter, Luddy contacted Heinrich to state that it was incomplete.
To: E. K. Luddy, CPA
In connection with your examination of the balance sheet of Amis Manufacturing, Inc., as of December 31, 2013, and the related statements of income, retained earnings, and cash flows for the year then ended, for the purpose of expressing an opinion as to 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 examination. There were no
• Plans or intentions that may materially affect the carrying value or classification of assets and 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 of assertion and must be disclosed in accordance with FASB ASC Topic 450, “Contingencies.”
• Capital stock repurchase options or agreements or capital stock reserved for options, warrants, conversions, or other requirements.
• Compensating balance or other arrangements involving restrictions on cash balances. R. Heinrich, President Amis Manufacturing, Inc. March 14, 2014

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

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  • CreatedSeptember 22, 2014
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