You have been the auditor of Crossborder Trading Company Ltd. for a number of years. The company‘s head office is in Nairobi, Kenya and if has considerable overseas operations. At each accounting year end, there are large debts due from overseas agents of the company (Sh. 270 million out of total debts of Sh. 680 million as at 31 December 2000). In the past, these debts have always been settled after year end but you have insisted that the debts be the subject of a specific representation made by the company‘s director. Required: Draft a paragraph for a letter of representation appropriate to the circumstances described above

―With respect to the debts due from the overseas agent, we acknowledge:
i) That we have included all such amounts as owed and no amounts outstanding are unrecorded.
ii) That as at 31 December 2000, the amounts owed by the agent total to Sh.270 million.
iii) That there is no reason to believe that the amount is not recoverable from the agent overseas. However, in the determination of provision for doubtful debts, this figure is included to determine the general provision

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