List four specific matters that should be included in a client representation letter

What will be an ideal response?

• Management's acknowledgment of its responsibility for the fair presentation of the financial statements
• Management's belief that the financial statements are fairly presented in conformity with applicable accounting standards
• Availability of all financial records and related data
• Completeness and availability of all minutes of meetings of stockholders, directors, and committees of directors
• Absence of unrecorded transactions
• Management's belief that the effects of any uncorrected financial statement misstatements are immaterial to the financial statements
• Information concerning fraud involving (a) management, (b) employees who have significant roles in internal control, or (c) others where fraud could have a material effect on the financial statements
• Information concerning related-party transactions and amounts receivable or payable to related parties
• Unasserted claims or assessments that the entity's lawyer has advised are probable of assertion and must be disclosed in accordance with accounting standards
• Bankruptcy of a major customer with an outstanding account receivable at the balance sheet date
• A merger or acquisition after the balance sheet date