Buy here: http://homework.plus/during-the-audit-of-bryant-industries-janet-smith-the-auditor-reviewed-matters-with-the-companys-president-brock-morton/ 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.

f. Violations of laws or regulations that should be disclosed in the financial statement or as a

basis for loss contingencies.

g. Capital stock repurchases or options that are reserved for conversions, warrants, etc.

Regards,

Brock Morton, President

Bryant Industries

Required:

(a) Based on this letter, identify at least five other matters that Brock Morton’s representation

letter should specifically confirm.

(b) What other problems exist with the letter provided to Janet Smith?