Note: Representations that are required by ISAs and AUDIT FIRM policy to be obtained in writing are

highlighted in bold type. They cannot be deleted from the letter as part of the tailoring process unless the
engagement team plans to obtain some other form of written representation from management.

AUDIT FIRM (A) ______________, 200X

[Firm address] (As of the date of board approval of the financial statements)

Dear Sirs,

We are writing at your request to confirm our understanding that the examination which you have
made was directed to the expression of an opinion on whether the financial statements (i.e. balance
sheet, related statements of income, changes in equity, and cash flows) B of [“the company”] as at
and for the year/period ended __________, 200X give a true and fair view [or presents fairly in all
material respects] of the financial position of [“the company”] and of the results of its operations,
changes in equity and its cash flows in accordance with International Financial Reporting Standards
(“IFRS”) [alternatively, indicate relevant financial reporting framework with reference to the country
of origin when International Financial Reporting Standards are not used] and the Companies Act
(“the Act”) [where applicable] and that your auditing procedures, including your tests of accounting
records, were limited to those which you considered necessary in the circumstances. We also
understand that such examination would not necessarily disclose all irregularities, should any exist.

Certain representations in this letter are described as being limited to matters that are material. We
understand that omissions or misstatements of items are material if they could, individually or
collectively, influence the economic decisions of users taken on the basis of the financial statements.
Materiality depends on the size and nature of the omission or misstatement judged in the surrounding
circumstances. The size or nature of the item, or a combination of both, could be the determining
factor. C
D
In connection with your examination we confirm, to the best of our knowledge and belief, after
appropriate consultations with the [other] directors and other officers of the company, the following
representations made to you during your examination:

1. There have been made available to you:

(a) all accounting and financial records and related data of the company ; E and

(b) minute books of the company, or summaries of directions and actions of recent meetings
for which minutes are not yet available, which contain a true and correct record of all the
business transacted at meetings of management, shareholders, directors and committees
of directors held during the period under review and up to the date of this letter, being
minutes of meetings held as follows: F

Shareholders: 200X:
200Y:
Directors: 200X:
200Y:
Etc., Etc.: 200X:
 2

AUDIT FIRM ______________, 200X

2. There have been no:

(a) communications from regulatory authorities concerning non-compliance with, or

deficiencies in, financial reporting practices;

(b) known actual or possible non-compliance with laws and regulations, that could have
a material effect on the financial statements in the event of non-compliance;

(c) allegations, whether written or oral, of misstatements or other misapplications of

accounting principles in the financial statements that have not been disclosed to you in
writing;

(d) allegations, whether written or oral, of deficiencies in internal control that could have a
material effect on the financial statements that have not been disclosed to you in writing;

(e) false statements made to you affecting the financial statements;

(f) material transactions that have not been properly recorded in the accounting records
underlying the financial statements; and

(g) shortages or other irregularities that have been discovered and have not been disclosed to
you.

3. Except as disclosed in the notes to the financial statements, there are no:

(a) assets pledged or assigned as security for liabilities, performance of contracts, etc.;

(b) guarantees, whether written or oral, under which the company is contingently liable;

(c) material unrecorded assets or contingent assets (such as claims relating to patent,
copyright or other intellectual property rights infringements; unfulfilled contracts; etc.;
whose values depend on fulfillment of conditions regarded as uncertain);

(d) off-balance sheet activities including:

( i) transactions with special purpose entities’
( ii) special purpose entities that should be but have not been consolidated
(iii) activities generating revenue that has not been recognised;

(e) material unrecorded liabilities or contingent liabilities (with respect to items such as
receivables sold or discounted; endorsements or guarantees; additional taxes for prior
years; repurchase agreements; sales subject to renegotiation or price re-determination;
violations or possible violations of laws or regulations; etc.);

(f) commitments or plans or intentions for purchases or sales of products or other assets at
prices which may materially affect the carrying value or classification of assets and
liabilities;
 3

AUDIT FIRM ______________, 200X

3. Except as disclosed in the notes to the financial statements, there are no: (cont’d)

(g) significant obsolete, damaged or unusable items included in inventories, except at salvage
or net realisable values;

(h) significant contractual obligations for plant construction or purchases of property, plant
and equipment;

(i) arrangements (contractual or otherwise) by which programs have been established to

provide retirement income or other post-employment benefits to employees, which have
not been disclosed to you;

(j) significant common ownership or management control relationships requiring disclosure;

(k) arrangements with financial institutions involving compensating balances or other

arrangements involving restrictions on cash balances and lines of credit or similar
arrangements;

(l) capital stock reserved for options, warrants, conversions or other requirements.

(m) agreements to purchase assets previously sold, including sales with recourse.

4. We acknowledge our responsibility for the design and implementation of internal controls
to prevent or detect and correct fraud and error. We understand that the term “fraud”
includes misstatements arising from fraudulent financial reporting and misstatements
arising from misappropriation of assets. Misstatements arising from fraudulent financial
reporting involve intentional misstatements including omissions of amounts or disclosures
in financial statements to deceive financial statement users. Misstatements arising from
misappropriation of assets involve the theft of an entity’s assets, often accompanied by
false or misleading records or documents in order to conceal the fact that the assets are
missing or have been pledged without proper authorisation.

We confirm that there are no:

(a) instances of fraud or suspected fraud involving management or employees who have
a significant role in internal control; G

(b) instances of fraud or suspected fraud involving others that could have a material
effect on the financial statements; G

(c) allegations of fraud, or suspected fraud, affecting the company’s financial

statements communicated by employees, former employees, analysts, regulators or
others. G

5. We have disclosed to you the results of our assessment of the risk that the financial
statements may be materially misstated as a result of fraud. H

6. The company has satisfactory title to all recorded assets and there are no liens or encumbrances
on such assets except as disclosed in the financial statements.
 4

AUDIT FIRM ______________, 200X

7. (a) Accounts receivable, aggregating $__________, net, represent valid claims against
customers and other debtors, and do not include amounts in respect of goods shipped on
consignment or approval. Adequate provision has been made to cover losses which may
be sustained in the collection of the receivables.

(b) All sales transactions entered into by the company are final and there are no side
agreements with customers, or other terms in effect, which allow for return of
merchandise, except for defectiveness or other conditions covered by the usual and
customary warranties.

8. Inventories, amounting to $__________, net, are based on physical quantities determined as at

__________, 200X by actual count, weight, or measurement by competent employees under
proper supervision, and, where appropriate, adjusted for transactions between the count date
and the balance sheet date.

The inventories include neither items billed to customers but not shipped, nor items returned by
customers for which credits have not been recorded. The inventories were priced at the lower
of cost, determined on the first-in, first-out basis, and net realisable value. Costs of material,
labour and appropriate allocations for overhead expenses are included in work-in-progress and
manufactured finished goods. The inventories are stated on the same basis and were
determined generally in the same manner as inventories at the end of the preceding year.

9. We have considered all of the matters of which we are aware that are relevant to the
company’s ability to continue as a going concern, including significant conditions and
events, and our plans for the company, and, having disclosed all relevant matters, we
continue to believe that preparation of the financial statements on the going concern basis
is appropriate. I

OR
We confirm that the attached schedule contains our plans for future action relevant to the
company’s ability to continue as a going concern. I

10. The calculations of tax expense and related assets and liabilities have been determined on the
basis of appropriate provisions of applicable enacted [or substantially enacted] tax laws and
regulations.
OR

The determination that there is no tax expense or related assets and liabilities is based on
appropriate provisions of applicable enacted [or substantially enacted] tax laws and regulations.

11. We believe that the carrying amounts of all material assets are recoverable. Adequate provision
has been made for impairment of the carrying value of such assets in accordance with IAS 36,
Impairment of Assets. The company’s cash generating units have been properly identified in
accordance with the standard. Provision has been made for any impairment losses related to
goodwill and/or non-amortizable intangible assets. ( tailor appropriately)

12. The company has no plans or intentions that may materially affect the carrying value or
classification of assets and liabilities.

13. The company has complied with all aspects of contractual agreements that would have a
material effect on the financial statements in the event of non-compliance.
 5

AUDIT FIRM ______________, 200X

14. The company is responsible for determining the carrying value of financial instruments in
accordance with IAS 39 Financial Instruments: Recognition and Measurement. Accordingly,
we confirm that, where applicable:

(a) financial instruments have been appropriately classified as fair value through profit or
loss, loans and receivable, held-to-maturity, available-for-sale or other liabilities;

(b) the bases and methods of valuing financial instruments are appropriate to the nature of
the instruments, that is, fair value, amortised cost or cost , based on their classification;

(c) the company has the intent and ability to hold to maturity financial assets classified as
‘held-to-maturity’. The company has not transferred or disposed of more than an
insignificant amount of such investments in the current or two preceding years, except as
permitted under International Financial Reporting Standards;

15. We have identified each part of an item of property, plant and equipment with a cost that is
significant in relation to the total cost of the item and depreciated each item separately in
accordance with IAS 16, Property, Plant and Equipment. (delete if not applicable).

16. We have no non-current assets or disposal groups that are required by IFRS 5, Non-current
Assets Held for Sale and Discontinued Operations, to be classified as held for sale.

OR

Non-current assets or disposal groups classified as held for sale are available for immediate sale
in their present condition, subject only to terms that are usual and customary for sales of such
assets, and their sale is highly probable as defined by IFRS 5, Non-current Assets Held for Sale
and Discontinued Operations. The company has no further non-current assets or disposal
groups that are required by IFRS 5 to be classified as held for sale.

17. The company has the ability and the intent to continue to hold long-term investments on a long-
term basis. Provision has been made for losses to be sustained as a result of other-than-
temporary declines in the fair values of investments. (delete if not applicable)

18. Presentation and disclosure of the fair value measurements of material assets, liabilities
and components of equity are in accordance with International Financial Reporting
Standards. The amounts disclosed represent the company’s best estimate of fair values of
financial instruments required to be disclosed by the standards. The measurement
methods and significant assumptions used in determining fair value have been applied on
a consistent basis, are reasonable and they appropriately reflect our intent and ability to
carry out specific courses of action on behalf of the company where relevant to the fair
value measurements or disclosures. The company has also disclosed the methods and
significant assumptions used to estimate the fair value of its financial instruments. Where
the fair values of financial assets or liabilities are held to approximate their carrying
values due to their short-term nature, we confirm that such assets can be realised or
liabilities settled at amounts not materially different from those disclosed. J

19. We have recorded or disclosed, as appropriate, all liabilities, both actual and
contingent, and have disclosed in Note [X] to the financial statements all guarantees that
we have given to third parties.
 6

AUDIT FIRM _________________, 200X

20. The estimated financial effect of pending or threatened litigation and claims against the
company has been properly recorded or disclosed in the financial statements. Except as
disclosed in the notes to the financial statements, we are not aware of any additional
claims that have been or are expected to be received.

21. Except as disclosed in the financial statements or notes to the financial statements, there
are no:

(a) other gain or loss contingencies or other liabilities that are required to be recognized
or disclosed in the financial statements, including liabilities or contingencies arising
from environmental matters resulting from illegal or possibly illegal acts, or
possible violations of human rights legislation; or

(b) other environmental matters that may have a material impact on the financial
statements. K

22. We confirm that the company does not have its shares or other securities registered with the
United States Securities Exchange Commission (herein referred to as an “SEC Issuer”), nor is it
an affiliate of an SEC issuer, which includes investment funds that are within an investment
company complex of an SEC Issuer, nor are the financial statements of the company included
in the consolidated financial statements of an SEC Issuer.

With regard to financial instrument risks:

(a) No derivative instruments are presently used to manage, mitigate or eliminate exposure to
financial instrument risks. Exposure to interest rate, credit, foreign currency, market,
cash flow and liquidity risks arises in the ordinary course of the company’s business.

(b) The financial instrument risk management strategies employed by the company are
adequately and completely described in the financial statements and have been
consistently applied.

(c) There are no significant concentrations of credit risk, except as disclosed in the notes to the
financial statements.

24 Provision, when material, has been made for:

(a) Losses which may be sustained in the fulfilment of, or from inability to fulfil, any sales
commitments.

(b) Losses to be sustained as a result of purchase commitments in excess of normal

requirements or at prices in excess of prevailing market prices.

25. Except as appropriately disclosed to you, the company has not entered into any new banking
relationships since the commencement of the year under review. The company has complied
with all covenants and conditions attaching to long-term loans and other indebtedness. (OR The
company has no long-term bank loans or other indebtedness.)
 7

AUDIT FIRM ______________, 200X

26. We confirm the completeness of the information provided to you regarding the
identification of related parties and regarding transactions with such parties that are
material to the financial statements. The identity of, and balances and transactions with,
related parties have been properly recorded, and when appropriate, adequately disclosed
in the notes to the financial statements. The definitions of both a related party and a
related party transaction, as we understand them and as defined in International
Accounting Standard 24, Related Party Disclosures, are described below:

A party is related to an entity if:

(a) directly, or indirectly through one or more intermediaries, the party:
( i) controls, is controlled by, or is under common control with, the entity (this includes
parents, subsidiaries and fellow subsidiaries);
( ii) has an interest in the entity that gives it significant influence over the entity; or
(iii) has joint control over the entity;
(b) the party is an associate (as defined in IAS 28, Investments in Associates) of the entity;
(c) the party is a joint venture in which the entity is a venturer (see IAS 31, Interests in Joint
Ventures);
(d) the party is a member of the key management personnel of the entity or its parent;
(e) the party is a close member of the family of any individual referred to in (a) or (d);
(f) the party is an entity that is controlled, jointly controlled or significantly influenced by, or
for which significant voting power in such entity resides with, directly or indirectly, any
individual referred to in (d) or (e); or
(g) the party is a post-employment benefit plan for the benefit of employees of the entity, or
of any entity that is a related party of the entity.
A related party transaction is a transfer of resources, services or obligations between related
parties, regardless of whether a price is charged.

27. We have considered which currency reflects the economic substance of the underlying events
and circumstances relevant to the company (the “functional currency”). We have concluded
that the functional currency of the company is the [insert currency] dollar.

28. The company’s reportable segments have been appropriately identified and the related segment
and enterprise-wide disclosures have been made in accordance with IAS 14 Segment Reporting
(delete if not applicable)
OR

There are no separate reportable segments for which separate and enterprise-wide disclosures
are required to be made in accordance with IAS 14, Segment Reporting.

29. We acknowledge that we are responsible for the source data and the assumptions used by the
actuaries. We believe that the actuarial assumptions and methods used to measure pension
assets/liabilities and costs for financial reporting purposes are appropriate in the circumstances.
The source data used is sufficient, relevant and reliable. (delete if not applicable)
 9

AUDIT FIRM ______________, 200X

30. We agree with the results of actuaries in evaluating the employee benefits and have adequately
considered the qualification of the actuaries in determining the amounts and disclosures used in
the financial statements and underlying accounting records. We did not give or cause any
instructions to be given to actuaries with respect to the values or amounts derived in an attempt
to bias their work, and we are not otherwise aware of any matters that have had an impact on
the independence or objectivity of the actuaries (delete if not applicable)

31. The following have been properly recorded or disclosed in the financial statements in
accordance with IAS 1, Presentation of Financial Statements:

(a) judgments, apart from those involving estimations, management has made in the process
of applying the entity’s accounting policies that have the most significant effect on the
amounts recognized in the financial statements; and

(b) key assumptions concerning the future, and other key sources of estimation uncertainty at
the balance sheet date, that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year, including:

 significant assumptions applied in estimating fair values of revalued items of

property, plant and equipment, as required by IAS 16, Property, Plant and
Equipment. (tailor representation to specific client)

 significant assumptions applied in estimating fair values of financial assets and

financial liabilities that are carried at fair value, as required by IAS 32, Financial
Instruments: Disclosure and Presentation; and

 major assumptions concerning future events affecting classes of provisions, as

required in specified circumstances by IAS 37, Provisions, Contingent Liabilities and
Contingent Assets.

32. The financial statements have been prepared on a basis consistent with that of the previous
year. All changes in accounting principles or other changes affecting consistency have been
disclosed to you and appropriately dealt with in the financial statements. (or, There are no
changes in accounting principles or other significant matters that have arisen that would
require a restatement of the comparative figures.)

33. During the year ended ___________, 200X, and subsequently through to the date of this letter,
no oral guarantees were made by the company at any bank or other financial institution on
behalf of an affiliate, director, officer or any other third party.

34. We have not completed the process of evaluating the impact that will result from adopting IAS
No. [name], as discussed in note [X]. The company is therefore unable to disclose the impact
that adopting IAS No. [XXX] will have on its financial position and the results of operations
when such Standard is adopted. [delete if not applicable]

35. No events have occurred, or matters been discovered, since ___________, 200X, which would
require adjustments to, or disclosure in, the financial statements, or notes thereto, except as
disclosed in note [X] to the financial statements.
 10

AUDIT FIRM _____________, 200X

Further, we acknowledge that we are responsible for presenting financial statements of the company
(i.e., statements of financial position, results of operations, changes in equity and cash flows, together
with relevant notes) that are true and fair and prepared in accordance with International Financial
Reporting Standards (“IFRS”) and the Companies Act (“the Act”) [so far as concerns members of the
company][where applicable in local jurisdiction]. Accordingly, we confirm that the financial
statements are true and fair [presents fairly in all material respects, the financial position and results
of operations of the company] and have been prepared in accordance with IFRS and the Act (delete if
not applicable]. In this regard, we specifically agree that we are responsible for adjusting the
financial statements to correct material misstatements and we believe that the effects of uncorrected
misstatements summarised in the accompanying schedule, are immaterial, both individually
and in the aggregate, to the financial statements taken as a whole. L

This letter was tabled at a meeting of the Board of Directors held on ______________, 200X.

Yours faithfully,
ABC LIMITED

________________________ Chief Executive Officer

[Insert name]

________________________ Chief Financial Officer

[Insert name]

________________________ Company Secretary

[Insert name]

Template for schedule of uncorrected financial statement misstatements

 Notes to the Representation Letter Template

A This letter is ordinarily dated the same date as our audit report. However, in certain
circumstances, a separate representation letter regarding specific transactions or other events
may also be obtained during the course of the audit or at a date after the date of the audit report,
for example, on the date of a public offering.

B The financial statements, dates and period identified here are the same as those identified in the
audit report. If applicable, the term “consolidated financial statements” should be used
throughout the letter.
When comparatives are provided as corresponding figures (as defined in ISA 710, Comparative
Figures), the representation letter should refer to the date of the current year’s financial
statements only. In addition, a representation relating to the corresponding figures would be
obtained; see note P, item xviii.
When comparatives are provided as comparative financial statements (as defined in ISA 710,
Comparative Figures), the representation letter should refer to the dates of the comparative
financial statements as well as to the current year’s statements. As a result, the first sentence of
the letter should state the following:
This representation letter is provided in connection with your audits of the balance sheets of
[name of company] (the “company”), as of [current and prior balance sheet dates], and the
related statements of income, changes in equity, and cash flows for each of the years in the two
year period ended [balance sheet date], for the purpose of expressing an opinion as to whether
these financial statements give a true and fair view of (or ‘present fairly, in all material
respects,’) the financial position of [name of Company] and of the results of its operations and
its cash flows in accordance with International Financial Reporting Standards [alternatively,
indicate relevant financial reporting framework, with reference to the country of origin when
International Financial Reporting Standards are not used]

C The description of the terms “material” and “materiality” is based on paragraph 5 of IAS 8,
Accounting Policies, Changes in Accounting Estimates and Errors. When International
Financial Reporting Standards have not been used to prepare the financial statements, the
description of these terms should be changed to reflect those of the specific financial reporting
framework used by the client.

D If other than an unqualified opinion is to be issued, management should acknowledge it and

the reason for it in the representation letter. Language similar to the following should be
included in this paragraph:

“We understand that your audit opinion will be qualified as follows: (copy text of paragraph
giving reason for qualification and the opinion paragraph from audit report here)”

E For small entities consider obtaining representation from the owner-manager as to the
completeness and accuracy of the accounting records and of the financial statements (for
example, that all income has been recorded)

F Consider whether it is necessary to obtain a separate representation letter about the

completeness of all minutes of the meetings of shareholders, the board of directors and
important committees from the individual responsible for keeping such minutes. If, in the
judgment of the engagement team, it is appropriate for signatories of the general representation
letter to make the representation concerning the completeness of the minutes, a separate letter is
not required. If a separate minutes letter is considered necessary, the date of this letter normally
will coincide with the date of the general representation letter. When a separate letter is
obtained, this sentence reads:
All minutes of meetings of shareholders and the board of directors as described in our
representation letter as to minutes dated [date]
G If client management has disclosed that there have been instances of fraud, consider the
following wording:

“We have disclosed to you our knowledge of fraud or suspected fraud affecting the
company involving management, employees who have significant roles in internal
control or others where the fraud could have a material effect on the financial
statements”.

H ISA 240, The Auditor’s Responsibility to Consider Fraud and Error in an Audit of Financial
Statements, states that the nature, extent and frequency of management’s assessment of the risk
of fraud and the systems in place to prevent and detect it vary from entity to entity. In some
entities, management may make detailed assessments on an annual basis or as part of
continuous monitoring. In other entities, management’s assessment may be less formal and less
frequent. The nature, extent and frequency of management’s assessment are relevant to our
understanding of the entity’s control environment.

Learning that management has NOT made an assessment of the risk of fraud may be indicative
of the lack of importance that management places on internal control. We assess the impact
this has on our audit, and plan our audit procedures accordingly.

I When events or conditions have been identified which may cast significant doubt on the
entity’s ability to continue as a going concern, paragraph 26 or ISA 570, Going Concern
requires us to obtain representations from management regarding its plans for future
action. Such plans can, for example, include plans to liquidate assets, borrow money or
restructure debt, reduce or delay capital expenditures, or increase capital.

J ISA 545, Auditing Fair Values Measurements and Disclosures, requires this representation to
be obtained in writing.

In addition to the general representation, other situations may exist where more specific
representations may be considered for inclusion. For example, the engagement team may wish
to obtain representations specific to an asset or liability requiring fair value measurements
depending on its nature, materiality and complexity.

Depending on the nature, materiality and complexity of fair values, management

representations about fair value measurements and disclosures contained in the financial
statements also may include representations about:

 specific assets or liabilities requiring fair value measurements;

 the basis used by management to overcome the presumption relating to the use of fair
value set forth under the entity’s financial reporting framework;
 the completeness and appropriateness of disclosures related to fair values under the
entity’s financial reporting framework;
 whether subsequent events require adjustment to the fair value measurements and
disclosures included in the financial statements.

K If client management is aware of environmental matters that have a material impact on the
financial statements, the representation should indicate that the Company has disclosed such
matters properly in the financial statements. For example:
Provision has been made for any material loss that is probable from environmental
remediation liabilities associated with activities of [include name of site] up to the balance
sheet date. We believe that such estimate is reasonable based on available information and
that the liabilities and related loss contingencies and the expected outcome of uncertainties
have been adequately disclosed in the Company’s financial statements.
L If management believes that certain of the uncorrected financial statement misstatements are
not misstatements, the following wording can also be added to the letter:

We do no agree that items… and … constitute misstatements because [description of reasons].

Other representations which can be added as appropriate:

M We confirm that all relevant information relating to the facts and circumstances, which are the
subject of the investigation conducted by [identify investigating counsel/team] of (description
of matter investigated) has been disclosed by us to the audit committee, to the investigating
team, and to you. We also confirm that, where necessary, we have taken, or are taking, timely
and appropriate remedial action.

N The company has not, directly or indirectly, including through a subsidiary, extended or
maintained credit (other than credit existing at July, 30, 2002), arranged for the extension of
credit, or renewed an extension of credit in the form of a personal loan to or for any director or
executive officer of the company (or equivalent thereof) that is considered prohibited under
Section 402 of the Sarbanes-Oxley Act of 2002. [This representation is required for entities
considered “issuers” under the Sarbanes-Oxley Act of 2002. It is applicable to those issuers
whose securities are registered under Section 12 of the Securities Exchange Act]

O For investments in common stock of which the entity has a greater than 50 percent ownership
interest, the equity method is used to account for the Company’s investment in the common
stock of [invested] because the minority shareholder has certain participatory rights which
overcome the company’s voting interest.

P The Company has excluded short-term obligations totalling $[amount] from current liabilities
because it intends to refinance the obligations on a long-term basis. [Complete with
appropriate wording detailing how amounts will be refinanced as follows:]

i. The Company has issued a long-term obligation [debt security] after the date of the
balance sheet but prior to the issuance of the (consolidated) financial statements for
the purpose of refinancing the short-term obligations on a long-term basis.

ii. The Company has the ability to consummate the refinancing, by using the financial
agreement referred to in Note [X] to the (consolidated) financial statements.

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

R We have accounted for derivatives and hedging activities in accordance with International
Financial Reporting Standards and complied with the applicable hedge accounting, designation,
documentation and effectiveness assessment requirements of these standards.

S There are no formal or informal compensating balance arrangements with any of our cash and
investment accounts. We have no line of credit arrangements other than those disclosed in
Note [X] to the financial statements.

T We have not completed the process of evaluating the impact that will result from adopting IAS
No. [XXX, Name], as discussed in Note [X]. The Company is therefore unable to disclose the
impact that adopting IAS No. [XXX] will have on its financial position and the results of
operations when such Statement is adopted.
U This letter is ordinarily signed by the members of management who have primary responsibility
for the entity and its financial aspects (ordinarily the senior executive officer and the senior
financial officer) based on the best of their knowledge and belief. In certain circumstances the
engagement team may wish to obtain representation letters from other members of management
who have knowledge of specific transactions or issues. For example, transactions involving
derivative activities can be complicated and often, only a few individuals within an entity fully
understand these activities. For clients engaged in derivative activities, the engagement team
may wish to obtain separate representations about derivative activities from those responsible
for such activities within the entity.

When a representation relates to management’s intent, the engagement team may wish to obtain
separate written representation from the appropriate members of management whose intentions
have impacted the presentation or disclosure of an item in the financial statements. For
example, when the classification and measurement of investments is based in part on
management’s intentions, the engagement team may wish to obtain separate written
representation from the entity’s investment committee regarding its intent for the entity to hold
the investments to maturity or for trading.