Document ID: chunk:federal_register_of_legislation:F2022C01208:reg:14:p35
Version: federal_register_of_legislation:F2022C01208
Segment Type: reg
Provision Reference: reg 14 (pt 35/57)
Character Range: 106194–109151

instruments;

    (f)                 unasserted claims or assessments that our lawyer(s) has advised us are probable of assertion;

    (g)                losses arising from the fulfilment of, or an inability to fulfil, any sale commitments or as a result of purchase commitments for inventory quantities in excess of normal requirements or at prices in excess of prevailing market prices; and

    (h)                all known actual or possible litigation and claims whose effects should be considered when preparing the financial report in accordance with the applicable financial reporting framework.

We have disclosed to you all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing the financial report.

The entity has satisfactory title to all assets, and there are no liens or encumbrances on such assets that have not been disclosed nor has any asset been pledged as collateral.  Allowances for depreciation have been adjusted for all important items of property, plant and equipment that have been abandoned or are otherwise unusable.

The entity has complied with all aspects of contractual agreements that would have a material effect on the financial report in the event of non‑compliance.

There were no material commitments for construction or acquisition of property, plant and equipment or to acquire other non‑current assets, such as investments or intangibles, other than those disclosed in the financial report.

We have no plans to abandon lines of product or other plans or intentions that will result in any excess or obsolete inventory, and no inventory is stated at an amount in excess of net realisable value.

No events have occurred subsequent to the balance sheet date through to the date of this letter that would require adjustment to, or disclosure in, the [financial report].

We understand that your examination was made in accordance with Auditing Standard on Review Engagements ASRE 2410 and was, therefore, designed primarily for the purpose of expressing a conclusion on the financial report of [the entity], and that your procedures were limited to those which you considered necessary for that purpose.

Yours faithfully

[Name of signing officer and title]

Notes:

[The above example representation letter may need to be amended in certain circumstances.  The following illustrate some of those situations.]

Exceptions

Where matters are disclosed in the financial report, the associated representation needs to be amended, for example:

      * If a subsequent event has been disclosed, Item 14 (above) could be modified to read:

    "Except as discussed in Note X to the financial 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