As is customary in completing your audit, you request the client to furnish you with a comprehensive representation letter. Your client, J. Hawler, who operates the business as a sole proprietor, reads the representations you are requesting him to make and refuses to furnish the letter. Hawler stated the position as follows: You are asking me to tell you all kinds of things that I hired you to figure out. For example, you are asking me to say that "the financial statements have been prepared in conformity with generally accepted accounting principles on a basis consistent with that of the preceding year." I paid you to make an audit and you should know whether or not that's true yourself.

1. What explanation would you give Hawler of the need for a client representation letter?

2. What would be the impact on your audit report if Hawler did not accept your explanation and continued to refuse to furnish the letter?