11-33 [ LO 1 ] During the audit of Bryant Industries , Janet Smith , the auditor , reviewed matters with the company ’ s president , Brock Morton , that were supposed to be included in a written client representation letter . Unfortunately , she received the letter below :
February 20 , 2011
To Janet Smith , CPA :
Regarding your audit of the financial statements for Bryant Industries , as of December 31 , 2010 , for the purpose of expressing an opinion on the fair presentation of financial position , results of operations , and cash flows in conformity with generally accepted accounting principles , we confirm to the best of our knowledge and belief that the following representations were made to you during your examination . There were no :
a . Plans or intent to materially affect the carrying value or classification of either assets or liabilities .
b . Unasserted claims that our lawyer has determined are probable and must be disclosed according to GAAP .
c . Compensating balance or other restrictive arrangements on cash balances .
d . Agreements to repurchase previously sold assets .
e . Regulatory agency communications concerning noncompliance with financial reporting practices .