Management representation letter to auditors.

It is usual that auditors may ask for Management Representation letter for conducting Audit/interim Audit. Management may have  situations to conduct an interim audit for various purposes including restructuring, reconstruction, merger, amalgamation, share transfer, valuation of shares etc. This is a model representation letter to be given to the Auditors for conducting  interim audit.

<date>
<Address of Auditor>
Dear Sir
Sub		:	Letter of Representation
Ref		:
You are requested to conduct an interim audit on the accounts of the Company as on <date>. This is the Letter of Representations issued by the Managing Director/Company Secretary/Director  of <the company> in respect of the Financial Statements for the period ending <date> in respect of the said company.
This is to certify the following in respect of <name of the company>
1.	Cash balance in hand as on <date> is <  >.
2.	All known and earned assets and incurred liabilities for the period ending and as on <  > have been recognized in the Balance Sheet as on  <date>.
3.	All known earned and incurred incomes and expenses for the period ending <date>  have been recognized in the Profit and Loss Account for the period ending <  >.
4.	As per information and explanations available as on date, no contingent liabilities exist as on <date>.
5.	The Board of Directors (Board) of the company explicitly recognize and accept the responsibility of making significant estimates and judgments, selection and application of Accounting Standards and preparation and presentation of the Financial Statements for the period ending  <  > as per the provisions of the Companies Act,1956.
6.	The Board explicitly recognizes its responsibility of instituting, operating and maintaining internal controls and safeguarding assets, books and other records and protection of revenue and confirms the existence of adequate internal controls during the year.
7.	None of the directors of the company is a director of any other company attracting the   provisions of Section 274(1)(g) of the Companies Act,1956.
8.	No bank account is opened/ operated in the company name in any foreign country nor has the company opened any foreign currency account in India.
9.	Foreign exchange transaction has been accounted as per the provisions of Accounting Standard -11. Foreign Exchange differences have been recognized and net difference has been charged to profit and loss account.
10.	The Board explicitly recognizes its responsibility of identifying related party relationships and transactions with related party.
				For <company>
<place>				<name>
<date>				Designation>