Robert Dingle, president of Alcmena Manufacturing, Ltd., Perth, Australia and the company’s external auditor Powell, Ram and Roberts, Chartered Accountant (CA), reviewed matters that were supposed to be included in a written representation letter. Upon receipt of the following client representation letter, Powell, Ram and Roberts contacted Dingle to state that it was incomplete. The letter Powell,

Ram and Roberts received is given below.

To Powell, Ram and Roberts, CA

In connection with your audit of the balance sheet of Alcmena Manufacturing as of December 31, 20X2, and the related statements of income, retained earnings and cash flows for the year then ended, for the purpose of expressing an opinion as to whether the financial statements present fairly, in all material respects, the financial position, results of operations and cash flows of Alcmena Manufacturing in conformity with generally accepted accounting principles, we confirm, to the best of our knowledge and belief, the following representations made to you during your audit. There were no:

• Plans or intentions that may materially affect the carrying value or classification of assets and liabilities.

• Communications from regulatory agencies concerning non-compliance with, or deficiencies in, financial reporting practices. 

• Agreements to repurchase assets previously sold.

• Violations or possible violations of laws or regulations whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency.

• Unasserted claims or assessments that our lawyer has advised are probable of assertion and must be disclosed in accordance with International Accounting Standards No.10.

• Capital stock repurchase options or agreements or capital stock reserved for options, warrants, conversions or other requirements.

• Compensating balance or other arrangements involving restrictions on cash balances.

R. Dingle, President

Alcmena Manufacturing Ltd.

March 14, 20X3

Required:

Identify the other matters that Dingle’s representation letter should specifically confirm.