Professional Documents
Culture Documents
L-102 (Financial Forecast)
L-102 (Financial Forecast)
1. We are responsible for the assumptions used in determining the financial forecast.
2. The financial forecast presents the expected financial position, results of operations,
and cash flows for the forecast period in accordance with generally accepted
accounting principles.3
4. The financial forecast is presented in conformity with the guidelines for presentation
of a forecast established by the American Institute of Certified Public Accountants.
1
If the completion of the examination procedures (and the date of the representation letter) is later than
the date of the preparation of the forecast, the following representation is included in the letter:
We are not aware of any material changes in the information or circumstances from (date), the date of the
forecast to the present.
2
This is to refer to the statements actually presented.
3
If the forecast is presented on a basis of accounting other than that used by the company for its historical
financial statements, this sentence is to say, “… which is different from the basis of accounting the
Company uses in preparing its historical financial statements.”
4
The [items subject to the assumption] are expected to fall within the range and the range was not
selected in a biased or misleading manner.
7. To the best of our knowledge and belief, the documents and records supporting the
assumptions are appropriate.
(Signature)5
(Name and title)
(Signature)5
(Name and title)
5
The letter is signed by the chief executive officer and chief financial officer. Engagement teams are
expected to utilize the DocuSign e-signature tool to electronically execute management representation letters,
as described in the DocuSign – Audit Usage Considerations document in the AKB.