Document ID: chunk:federal_register_of_legislation:F2022C01208:reg:14:p36
Version: federal_register_of_legislation:F2022C01208
Segment Type: reg
Provision Reference: reg 14 (pt 36/57)
Character Range: 108910–111872

report, no events have occurred .…."

      * If the entity has plans that impact the carrying values of assets and liabilities, Item 5 (above) could be modified to read:

    "The entity has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities, except for our plan to dispose of segment X, as disclosed in note Y in the financial report, which is discussed in the minutes of the meeting of the governing body[21] held on [date]".

Other Required Information

Certain entities may be required to include other information in the financial report, for example, performance indicators for government entities.  In addition to identifying this information and the applicable financial reporting framework in paragraphs 1 and 2 of the example management representation letter, an additional paragraph similar to the following may be appropriate:

"The disclosures of key performance indicators have been prepared and presented in conformity with [relevant statutory requirements] and we consider the indicators reported to be relevant to the stated objectives of the [entity]".

Management's Opinions and Representation in the Notes to the Financial Statements

Where the notes to the financial statements include opinions and representations by management, such matters may be addressed in the representation letter.  For example, notes relating to the anticipated outcome of litigation, the intent and ability to hold long‑term securities to maturity and plans necessary to support the going concern basis.

Environmental Matters

In situations where there are environmental matters that may, but probably will not, require an outflow of resources, this may be reflected in an addition to Item 9 (above), for example:

"However, the [entity] has received a notice from the Environmental Protection Agency that it may be required to share in the cost of clean-up of the [name] waste disposal site.  This matter has been disclosed in Note A in the financial report and we believe that the disclosure and estimated contingent loss is reasonable based on available information."

Compliance

If, as part of the review, the auditor is required also to report on the entity's compliance with laws and regulations, a representation may be appropriate acknowledging that management is responsible for the entity's compliance with applicable laws and regulations and that the requirements have been met.  For example, for reviews under the Corporations Act 2001, the following paragraph may be added:

"The financial records of the [company, registered scheme or disclosing entity] have been kept so as to be sufficient to enable a financial report to be prepared and reviewed, and other records and registers required by the Corporations Act 2001 have been kept properly and are up‑to‑date.

Other Matters

Additional representations that may be appropriate in specific situations may include the following: