$17-12$ What to Include in a Management Representation Letter

During the audit of the financial statements of Amis Manufacturing, Inc., the company$$s president, R$.$ Alderman, and E$.$ K$.$ Luddy, the auditor, reviewed matters that were supposed to be included in a written representation letter. Upon receiving the following client representation letter, Luddy contacted Alderman to state that the letter was incomplete.

To; E$.$ K$.$ Luddy, CPA

We are providing this letter in connection with your audit of the financial statements of

Amis Manufacturing, Inc., as of December $31,2007,$ and for the period January $1,2007$ to December $31,2007,$ for the purpose of expressing an opinion as to whether the financial statements present fairly the financial position, results of operations, and cash flows of Amis Manufacturing, Inc., in conformity with generally accepted accounting principles. We confirm that we are responsible for the fair presentation in the financial statements of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles.

Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement.

We confirm, to the best of our knowledge and belief, that there were no:

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

$$ Communications from regulatory agencies concerning noncompliance 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 Statement of Financial Accounting Standards No$.5.$

$$ 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$.$ Alderman, President

Amis Manufacturing, Inc.

March $14,2008$

Required: Identify the other matters that Alderman$$s representation letter should confirm.