Management
Representation Letter
(date-same as on the audit report)
To Cristian Borcan, CPA, PC
This representation letter is provided in connection with
your audit of the financial statements of (name of the
audited firm) which comprise the balance sheet as of December 31, 2023 , and the related statements of
income, retained earnings, and cash flows for the period then ended, and the
disclosures (collectively, the “financial statements”), for the purpose of
expressing an opinion as to whether the financial statements are presented
fairly, in all material respects, in accordance with accounting principles
generally accepted in the United States (U.S. GAAP).
Certain representations in this letter are described as
being limited to matters that are material. Items are considered material,
regardless of size, if they involve an omission or misstatement of accounting
information that, in light of surrounding circumstances, makes it probable that
the judgment of a reasonable person relying on the information would be changed
or influenced by the omission or misstatement. An omission or misstatement that
is monetarily small in amount could be considered material as a result of
qualitative factors.
We confirm, to the best of our knowledge and belief, as of (date-same as on the audit report), the following
representations made to you during your audit.
Financial Statements
1) We have fulfilled our responsibilities, as set out in
the terms of the audit engagement letter dated December
22, 2023 , including our responsibility for the preparation and fair
presentation of the financial statements.
2) The financial statements referred to above are fairly
presented in conformity with U.S. GAAP.
3) We acknowledge our responsibility for the design,
implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
4) We acknowledge our responsibility for the design,
implementation, and maintenance of internal control to prevent and detect
fraud.
5) Significant assumptions we used in making accounting
estimates, including those measured at fair value, are reasonable.
6) Related party relationships and transactions have been
appropriately accounted for and disclosed in accordance with U.S. GAAP.
7) All events subsequent to the date of the financial
statements and for which U.S. GAAP requires adjustment or disclosure have been
adjusted or disclosed.
8) The effects of uncorrected misstatements are immaterial,
both individually and in the aggregate, to the financial statements as a whole.
A list of the uncorrected misstatements is attached to the representation letter.
9) The effects of all known actual or possible litigation,
claims, and assessments have been accounted for and disclosed in accordance
with U.S. GAAP.
10) Significant estimates and material concentrations have
been properly disclosed in accordance with U.S. GAAP.
11) Guarantees, whether written or oral, under which the
Company is contingently liable, have been properly recorded or disclosed in
accordance with U.S. GAAP.
Information Provided
12) We have provided you with:
a) Access to all information, of which we are aware, that
is relevant to the preparation and fair presentation of the financial
statements, such as records (including information obtained from outside of the
general and subsidiary ledgers), documentation, and other matters.
b) Additional information that you have requested from us
for the purpose of the audit.
c) Unrestricted access to persons within the Company from
whom you determined it necessary to obtain audit evidence.
13) All material transactions have been recorded in the
accounting records and are reflected in the financial statements.
14) 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.
15) We have no knowledge of any fraud or suspected fraud
that affects the Company and involves:
a) Management,
b) Employees who have significant roles in internal
control, or
c) Others where the fraud could have a material effect on
the financial statements.
16) We have no knowledge of any allegations of fraud or
suspected fraud affecting the Company’s financial statements communicated by
employees, former employees, analysts, regulators, or others.
17) We have no knowledge of any instances of noncompliance
or suspected noncompliance with laws and regulations whose effects should be
considered when preparing financial statements.
18) We have disclosed to you all known actual or possible
litigation, claims, and assessments whose effects should be considered when
preparing the financial statements.
19) We have disclosed to you the names of all of the
Company’s related parties and all the related party relationships and
transactions, including any side agreements.
20) The Company has satisfactory title to all owned assets,
and there are no liens or encumbrances on such assets nor has any asset been
pledged as collateral.
21) We acknowledge our responsibility for presenting the [Identify supplementary information.] in accordance
with U.S. GAAP, and we believe the Contracts Revenue earned, Completed
contracts, Contracts in progress, and General and administrative expenses,
including its form and content, is fairly presented in accordance with U.S.
GAAP. The methods of measurement and presentation of the Contracts Revenue
earned, Completed contracts, Contracts in progress, and General and
administrative expenses [have not changed from those used in the prior period,
and we have disclosed to you any significant assumptions or interpretations
underlying the measurement and presentation of the supplementary information.
Signature:
Title:
