Discussion:What $ does Rep Letter now require disclosed?

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Discussion Forum Index --> Accounting Questions --> What $ does Rep Letter now require disclosed?


Orange2 (talk|edits) said:

11 April 2013
The new audit rep letter under the Clarified standards has a line that states:

Except where otherwise stated below, immaterial matters less than $_______ collectively are not considered to be exceptions that require disclosure for the purpose of the following representations. This amount is not necessarily indicative of amounts that would require adjustment to or disclosure in the financial statements.

What exactly is it looking for? I know they changed the terms, but I think it seems like you should put the planning materiality? that could be a huge number - does anyone know why this change? I have never discussed that amount with the client, intentionally. Why have to disclose it now? And if there is that second sentence, why have it in the letter anyway?

EmpireCPA (talk|edits) said:

11 April 2013
Based on the guidance in AU-C 580.A22, I don't believe that this is a required representation.

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