Illustrative Representation LetterIllustrative Representation Letter

Illustrative Representation Letter

The following illustrative letter includes written representations that are required by this and other Auditing Standards, in effect for audits of financial reports for periods beginning on or after 1 January 2010. It is assumed in this illustration that the applicable financial reporting framework is the Australian Accounting Standards and the Corporations Act 2001; the requirement of ASA 570[10] and ASA 710# to obtain a written representation is not relevant; and that there are no exceptions to the requested written representations. If there were exceptions, the representations would need to be modified to reflect the exceptions.

(Entity Letterhead)

(To Auditor)

(Date)

This representation letter is provided in connection with your audit of the financial report of ABC Company Ltd for the year ended 30 June 20XX[11] [or period covered by the auditor’s report] for the purpose of expressing an opinion as to whether the financial report gives a true and fair view in accordance with the Australian Accounting Standards and the Corporations Act 2001.

We confirm that (to the best of our knowledge and belief, having made such enquiries as we considered necessary for the purpose of appropriately informing ourselves):

Financial Report

• We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated [insert date], for the preparation of the financial report in accordance with Australian Accounting Standards and the Corporations Act 2001; in particular the financial report gives a true and fair view in accordance therewith.
• The methods, the data, and the significant assumptions used in making accounting estimates, and their related disclosures are appropriate to achieve recognition, measurement or disclosure that is reasonable in the context of the applicable financial reporting framework. (ASA 540)
• Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of Australian Accounting Standards. (ASA 550)
• All events subsequent to the date of the financial report and for which Australian Accounting Standards require adjustment or disclosure have been adjusted or disclosed. (ASA 560)
• The effects of uncorrected misstatements are immaterial, both individually and in the aggregate, to the financial report as a whole. A list of the uncorrected misstatements is attached to the representation letter. (ASA 450)
• [Any other matters that the auditor may consider appropriate (see paragraph A10).]

Information Provided[12]