To make it little easier:
1. All material transactions have been properly recorded in the accounting records underlying the financial statements
2. In connection with an audit of our financial statements, management has prepared and furnished to our auditors a description and evaluation of certain contingencies
3. Provision has been made for any material loss to be sustained in the fulfillment of, or from inability to fulfill, any sales commitments
4. Fees for our services are based on our regular per diem rate, plus travel, and other out-of-pocket expenses
5. The objective of our audit is to express an unmodified opinion on the financial statements, although it is possible that facts or circumstances encountered may preclude us from expressing and unmodified opinion.
6. No fraud involving employees occurred that could have a material effect on the financial statements
7. Are you aware of any facts or circumstances that may indicate lack of integrity in any member of senior management?
8. If a difference in opinion on a practice problem existed between engagement personnel and a specialist or other consultant, was the difference resolved in accordance with firm policy and appropriately documented?
9. Although we have not conducted a comprehensive, detailed search of our records, no deposit or loan accounts have come to our attention except as noted below.
10. At the conclusion of our audit, we will request certain written representations from you about the financial statements and related matters.
11. We have no plans or intentions that may materially affect the carrying amount or classification of assets and liabilities
12. As discussed in Note 14 on the financial statements, the company has had numerous dealings with business controlled by, and people who are related to, the officers of the company.
13. There were unreasonable delays by management in permitting the commencement of the audit and in providing needed information
14. If this statement is not correct, please write promptly, using the enclosed envelope and give details of any differences directly to our auditors
15. The company has suffered recurring loss from operation and has net capital deficiency that raises substantial doubt about its ability to continue as a going concern.
And the choices are:
Auditor’s communication with audit committee
Auditor’s engagement letter
Auditor’s report
Communication with predecessor auditor
External confirmation
Letter of inquiry to legal counsel
Management representation letter
Partner’s engagement review program
Standard financial institution confirmation request
.