During the final stage of the first audit of Nairobi National Bank Ltd. You request theclient to provide you with a letter of representation. The Client reads representations you are requesting and refuses to furnish the letter. The client states its position to be as follows:-―You are asking us to tell you all manner of things which we appointed you to find out. You are requesting us to say such things as ‗all the transactions undertaken by the bank have been properly reflected in the accounting records‘and yet we pay you to carry out the audit. You should know whether these statements are true or not; Required: Describe the nature of the content of a letter of representation. Your answer should be illustrated with specific examples of items which may appear in a letter of representation

Example of a letter of representation

Set out below is an example of a letter of representation, which relates to matters, which are material to financial statements and to circumstances where the auditor cannot obtain independent corroborative evidence and could not reasonably expect it to be available. It is not intended to be a standard letter because representations by management can be expected to vary not only from one enterprise to another but also from one year to another in the case of the same client.
An example of Letter of presentation

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