The responsibilities of the External Auditor are:

• To express an opinion whether the financial statements give a true and fair view of the state of the company’s affairs and of the profit or loss for the year and whether they comply with the Companies Act and International Statements of Accounting Standard;
• In order that the external auditor can express the aforesaid opinion on the true and fair view , he or she needs to perform the following audit works:

• Perform sufficient tests to obtain reasonable assurance as to whether the information contained as underlying accounting records and other source data is reliable and sufficient as the basis for the preparation of the financial statements.

• However, the information used by the directors in preparing the financial statements will invariably include facts or judgements which are not themselves recorded in the accounting records.

• As part of the audit process, the external auditors shall request appropriate directors to sign a formal letter to us to confirm such facts in judgements and to help ensure that no information has been omitted or inadvertently withheld from the auditors. Such formal letter is known as Letter Of Representation.

Append below is a Sample of CLIENT REPRESENTATION LETTER

Client’s Letterhead

(Date - date of

auditor’s report)

Auditor Name

Chartered Accountants

(Address)

Dear Sirs,

We confirm, to the best of our knowledge and belief, and having made appropriate enquires of other directors and officials of the Company, the following representations made to you during your audit of the financial statements of Company:XXX. for the financial year ended 31 December 2005 for the purpose of reporting to the members of the Company in accordance with the provisions of Section XX of the Companies Act, XXXX.

1. We acknowledge as directors that our primary responsibility is to ensure that the financial statements of the Company comply with the provisions of the Companies Act, XXXX and applicable approved accounting standards in XX; and that they give a true and fair view of the state of affairs of the Company as at 31 December 2005 and of the results and cash flows of the Company for the financial year ended on that date.

2.There have been no irregularities involving management or employees who have a significant role in the system of internal control, or other employees that could have a material effect on the financial statements of the Company.

3. We have made available to you all books of accounts and supporting documentation and all minutes of meetings (including circular resolutions) of shareholders and board of directors, executive committee of the board of directors. They are complete and authentic records of all meetings (including circular resolutions) held during the financial year and up to the date of this letter and we have disclosed them to you in writing.

4. The financial statements of the Company are free of material errors and omissions.

5. We have made available to you all significant contracts. The Company has complied with all aspects of contractual agreements that could have a material effect on the financial statements of the Company in the event of non-compliance. There have been no communication concerning non-compliance with requirements of regulatory authorities with respect to financial matters.

6. Balances and transaction with related parties have been properly recorded and when appropriate, adequately disclosed in the financial statements of the Company.

7. We have reviewed the carrying amounts of the assets, other than financial assets of the Company as at 31 December 2005. There is no indication of impairment in value of any assets as at the balance sheet date.

8. We are of the opinion that the fair values of financial instruments, where applicable, of the Company disclosed in Note 17 have been arrived at based on factual estimates.

9. We have no plans or intentions that may materially affect the carrying value or classification of assets and liabilities reflected in the financial statements of the Company.

10. We have identified all doubtful receivables. No allowance for doubtful debts is necessary to be made as we are of the opinion that all debts are fully collectible.

11. Inventories are stated at lower of cost and net realizable value. No inventories are stated at an amount in excess of net realizable value. Items to which the Company has no title and items sold by the Company up to and including the balance sheet date have been excluded from inventories. Goods held by third parties and other items to which our Company has title have been included.

12. The Company had satisfactory title to all assets and there are no liens, or encumbrances on the Company’s assets.

13. We have recorded or disclosed all liabilities, both actual and contingent.

14. There have been no events subsequent to the balance sheet date which require adjustment of or disclosure in the financial statements of the Company and notes thereto.

15. No claims in connection with litigation have been or are expected to be received.

16. There are no formal or informal compensation balance arrangements with any of our cash accounts.

17. We have taken precautionary measures to ensure strict adherence to relevant laws, including the Companies Act, XXXX and other rules and laws applicable to the Company. We confirm as at the date of this letter, that there is no incidence of breach or non-performance of any requirements or provisions of the aforementioned rules and laws or any matter which may adversely affect to a material extent the financial position of the Company.

18. We acknowledge our responsibility for the implementation and operations of accounting and internal control systems that are designed to prevent and detect fraud and error.

We have assessed the risk that the financial statements may be materially misstated as a result of fraud and we confirm to you that such risk has been adequately dealt with to enable the preparation of the financial statements on a true and fair basis.

We are not aware of any fraud or suspected fraud that may have affected the entity.

Yours faithfully,

Signature ………………………………………..

Name :

(Managing Director or Executive Director)

Signature ………………………………………..

Name :

(Director or officer responsible for the financial management of the Company)