Date: Wed, 20 FEB 2008 07:15:25 +0000 From: "Darlene Wardlaw" Subject: Management Representation letter You need to draft a proposed management representation letter to be prepared on Zayless letterhead stationery for Arnold to review when he returns. The letter is to be addressed to Anderson, Olds, & Watershed from Zayless CEO and CFO. Include all the required items and any additional points you think are necessary based on the following (see SAS 85 , AU 333): We know of no frauds or violations of laws by either management or employees. There is one legal matter covered in the attorney's letter which has been received. There are several subsequent events that the client had disclosed to you. There are no capital stock repurchase options, compensating balances, or agreements to repurchase assets previously sold. 0 All material adjustments have been made to the nancial statements. Remember, we draft the letter; management has to sign it. That will be Arnold's job to get them to sign the letter. He will also have to be the bearer of the bad news --- all the adjustments that we have found. You need to also draft the management certication statement required by Sarbanes Oxley. You can find a copy in last year's lO-K