We confirm that to the best of our knowledge and belief, and having made appropriate enquiries of other directors and officials of the company / parent company and other entities included in the consolidated financial statements (‘the group’):
- We acknowledge and have fulfilled our responsibilities, as set out in the terms of audit engagement, for ensuring that the company/group maintains adequate accounting records and for the preparation of the financial statements in accordance with the applicable financial reporting framework(s), in particular the financial statements give a true and fair view in accordance therewith.
- We confirm that the methods, signiﬁcant assumptions and the data used in making accounting estimates and the related disclosures are appropriate in the context of the applicable ﬁnancial reporting framework.
- Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the applicable financial reporting framework(s). In particular, full disclosure is made in the financial statements of:
- any arrangement, transaction or agreement to provide credit facilities (including loans, quasi-loans, or credit transactions) for directors or any guarantee or provision of security for directors;
- the identity of the party which controls the company, if any;
- transactions and balances with related parties including:
- the identity of the party which controls the company, if any;
- a description of the relationship between the parties;
- a description of the transactions; the amounts involved (even if nil);
- the amount of outstanding balances and:
- their terms and conditions, including whether they are secured, and the nature of the consideration to be provided in settlement; and
- details of any guarantees given or received;
- provisions for uncollectable receivables related to the amount of outstanding balances;
- the expense recognised during the period in respect of bad or doubtful debts due from related parties;
- and any other information about the transactions, outstanding balances and commitments necessary for an understanding of the financial statements.
- key management personnel compensation;
- Full disclosure is made in the financial statements of:
- outstanding capital commitments contracted for at the balance sheet date;
- all contingent liabilities including details of pending litigation and material claims against the company / company and group;
- all guarantees or warranties or other financial commitments including those given to or on behalf of other group companies.
- We have no plans or intentions that may materially alter the carrying value or classification of assets and liabilities reflected in the financial statements.
- There have been no events or conditions (e.g., loss of key customer, supplier or member of staff, change in credit terms offered by suppliers, breaches of bank or other covenants, changes in banking or insurance arrangements or facilities) other than those already advised to you since the balance sheet date that would impact on the ability of the company / group to continue as a going concern. Should such events or conditions occur prior to your signature of the audit report we will advise you immediately. Except as already incorporated into our cash flow and profit forecasts we have no plans or intentions that would impact on the ability of the company/group to continue as a going concern.
- With regards to our going concern assessment we confirm that our future plans are as follows:
- We confirm that our going concern assessment covers the period ending [date to be inserted].
- All events occurring subsequent to the date of the financial statements and for which the applicable financial reporting framework(s) require(s) adjustment or disclosure have been adjusted or disclosed. Should such further material events occur prior to your signature of the audit report we will advise you accordingly.
- The effects of uncorrected misstatements (whether arising from differences in amount, classification, presentation or disclosure of a reported financial statement item and the amount, classification, presentation or disclosure that is required for the item to be in accordance with the applicable financial reporting framework) are immaterial, both individually and in the aggregate, to the financial statements as a whole. A list of the uncorrected misstatements including those in relation to disclosures is attached to this representation letter.
- As agreed in the terms of engagement, we have provided you with:
- Access to all information of which we are aware that is relevant to the preparation of the financial statements such as records, documentation and other matters;
- Additional information that you have requested from us for the purpose of the audit; and
- Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence.
- We confirm that all transactions have been recorded in the accounting records and are reflected in the financial statements.
- 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.
- We have disclosed to you our knowledge of fraud and suspected fraud affecting the entity involving:
- Employees who have significant roles in internal control; or
- Others where the fraud could have a material effect on the financial statements.
- We have disclosed to you all information in relation to allegations of fraud, or suspected fraud, affecting the financial statements communicated by employees, former employees, analysts, regulators or others.
- We have disclosed to you all known instances of non-compliance or suspected non-compliance with:
- the Financial Services and Market Act 2000 (FSMA 2000);
- the Money Laundering Regulations;
- the FCA rules;
- other laws and regulations whose effects should be considered when preparing the financial statements; or
- any other circumstances that could jeopardise the authorisation of the firm under FSMA 2000.
We have also notified you of the actual or contingent consequences which may arise from such non-compliance, including any potential effects on the company’s/group’s ability to conduct its business.
Where applicable - We confirm, to the best of our knowledge and belief, that the breaches of CASS rules, as recorded on the breaches schedule, includes all breaches we have identified as having existed; or where appropriate; that there were no breaches of CASS rules identified during the period covered by your report.
- We have disclosed to you the identity of the company’s/group’s related parties and all the related party relationships and transactions of which we are aware.
- We have disclosed to you the details of all known actual or possible litigation and claims whose effect should be considered when preparing the financial statements.
- We confirm that we have disclosed to you details of all banking and financing arrangements including related contracts and hedging products.
- We confirm that we have informed you of all tax avoidance schemes used by the company/group.
- We confirm that as far as we are aware:
- no services have been provided to us or our affiliated entities by RSM network firms and their related entities that we have not already informed you of;
- no gifts, hospitality, favours, donations or sponsorship have been exchanged between us or our affiliated entities and RSM network firms and their related entities that we have not already informed you of;
- no employment relationships exist between us or our affiliated entities and partners or employees of RSM network firms and their related entities we have not already informed you of; and
- no other business or personal relationships exist between us or our affiliated entities and RSM network forms and their related entities we have not already informed you of.
The related entities of RSM network firms are as set out in the list provided.
We confirm that:
- We acknowledge responsibility for establishing and maintaining accounting records and systems of control in accordance with the rules of the FCA.
- We have made available to you all correspondence and notes of meetings with the FCA.
- All complaints have been drawn to your attention.
- Where applicable - No client money and / or custody assets were administered or held.
- Where applicable - We confirm that the company did not hold any mandates as covered by CASS 8.
- Where applicable - Consolidated supervision does not apply.
We acknowledge our responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud and error and we believe we have appropriately fulfilled those responsibilities.
To assist the auditor in complying with ISA (UK) 720 The Auditor’s Responsibilities Relating to Other Information we confirm that we have informed you of all the documents that will be communicated to shareholders in the annual report.
We confirm that we have taken all the steps that we ought to have taken as directors in order to make ourselves aware of any relevant audit information and to establish that it has been communicated to the auditors. We confirm that, as far as we are aware, there is no relevant audit information of which the auditors are unaware.
We confirm that the above representations are made on the basis of enquiries of management and staff with relevant knowledge and experience (and, where appropriate, of inspection of supporting documentation) sufficient to satisfy ourselves that we can properly make each of the above representations to you.