Professional Documents
Culture Documents
B Internal controls
C Accounting standards
D Expenses
E Revenue
F Exchange rates
G Other matters
38d Are there any assets (cash / bank balances) that are
restricted to use?
39 Has your examination confirmed that the client has not
experienced significant and unusual events or transactions
or made unusual provisions during the year under review
that have an effect on the Project statements?
H Procurement
40 Did you verify that goods, works and services required are
carried out in accordance with Procurement Procedures of
Oxfam Novib?
Please specify local procurement procedures
41 Did you identify cases where procurement of expenses
were not in conformity with the Procurement processes of
Oxfam Novib? If so, please verify whether suppliers were
selected objectively and threshold amounts were respected
in accordance with the EU public procurement rules, or – in
case EU rules do not apply, local procurement legislation.
Please specify cases
Oxfam Novib - audit instructions ’Empowering Youth for Work’
Project period 1 April 2017 - 31 March 2018
3 CRITICAL MATTERS
The information in each critical matter’s detailed description should include a description of
the matter; implications of the matter; actions taken to address the matter and any additional
evidence obtained; results of consultations with others; information identified that is
inconsistent with or contradicts the component team’s final conclusion concerning the matter;
and final conclusions reached and the basis thereof.
Please follow up any uncertainties which were identified in the previous year-end reports,
stating any developments or actions taken by management.
5 AUDIT DIFFERENCES
Please provide us with an overview of all identified misstatements. Al adjustments and
unadjusted errors identified should be communicated. Please explicitly quantify, regardless
of materiality, the amount for costs missing sufficient supporting documentation.
6 ANALYTICAL REVIEW
This section should include a comparison of the results as at [year end] to budget, with
explanations for any material variances.
7 OTHER ISSUES
Any other issues identified during the course of your work.
8 AUDIT OPINION
Please indicate what kind of audit opinion is or will be issued.
C3. MANAGEMENTLETTER
In addition, to the audit report, the auditor will also provide a “Management letter” summarizing
the observations on the accountability and internal control issues. These would include the
following:
a. Comments and observations on the accounting records, systems and controls that were
examined during the course of audit.
b. Specific deficiencies and areas of weakness in systems and controls and
recommendation for improvement.
c. Matters that have come to the attention during the audit which might have significant
impact on the implementation of the Project
d. Any other matter that the auditor considers significant to report to the management.
Place , Date
RE: Letter of representation
010-2771521
Dear [component auditor name], 010-4366045
This representation letter is provided in connection with your audit of the Financial Report of
[name of implementing partner] (" the entity"), for the purpose of expressing an
opinion as to whether this Financial Report gives a true and fair view for the period ending
31 March 2018 in accordance with the Stichting IKEA Foundation (further referred to as ’the
IKEA Foundation’) conditions for Financial Reporting as stipulated in the agreement between
Oxfam Novib and the IKEA Foundation with reference number G-151 1-00306 and the audit
instructions of Mazars Paardekooper Hofmann N.V. of the Netherlands for the period ending
31 March 2018.
We acknowledge our responsibility for the preparation and fair presentation of the Financial
Report. This responsibility includes: designing, implementing and maintaining internal control
relevant for the preparation and fair presentation of the Financial Report that are free from
material misstatements, whether due to fraud or error; selecting and applying appropriate
accounting policies; and making accounting estimates that are reasonable in the
circumstances.
Certain representations in this letter are described as being limited to matters that are
material. We understand that omissions or misstatements of items are material if they could,
individually or collectively, influence the economic decisions of users taken on the basis of
this Financial Report. Materiality depends on the size and nature of the omission or
misstatement judged in the surrounding circumstances. The size or nature of the item, or a
combination of both, could be the determining factor.
Statements
1. We have made such inquiries of others who participate in preparing and presenting the
Financial Report and assertions therein, including individuals who have specialized
knowledge relating to matters about which written representations are requested, as we
considered appropriate to place ourselves in the position to be able to make the requested
written representations.
2. All transactions have been recorded in the accounting records and are reflected in the
Financial Report.
3. Measurement methods and significant assumptions used by us in making accounting
estimates regarding (name of elements with accounting estimates), are reasonable.
Oxfam Novib - audit instructions ’Empowering Youth for Work’
Project period 1 April 2017 - 31 March 2018
4. All events subsequent to the date of the Financial Report and for which The Agreement
requires adjustment or disclosure have been adjusted or disclosed.
5. The effects of uncorrected misstatements are immaterial, both individually and in the
aggregate, to the Financial Report as a whole. A list of the uncorrected misstatements is
attached to the representation letter.
Information provided
7. The term fraud refers to an intentional act by one or more individuals among management,
those charged with governance, employees, or third parties, involving the use of
deception to obtain an unjust or illegal advantage. Fraud also includes misstatements
resulting from misappropriation of assets, including pledging of assets without proper
authorization. Fraudulent financial reporting involves intentional misstatements or
omissions of amounts or disclosures in the financial statements to deceive financial
statement users.
a. We acknowledge responsibility for the design and implementation of internal control
to prevent and detect fraud.
b. We have disclosed to you the results of our assessment of the risk that the financial
statements may be materially misstated as a result of fraud
c. We have disclosed to you all information in relation to suspected fraud, allegation of
fraud or fraud affecting the entity involving:
management;
employees who have significant roles in internal control; or
others where the fraud could have a material effect on the financial statements
d. We have disclosed to you all information in relation to any suspected fraud, allegations
of fraud, or fraud, affecting the entity’s financial statements communicated by
employees, former employees, analysts, regulators or others.
Related parties.
9. We have not offered third parties, or accepted from third parties, for our own benefit of
another party, any gifts, rewards, compensation or benefits which can be interpreted as
an illegal or bribery act.
Oxfam Novib - audit instructions ’Empowering Youth for Work’
Project period 1 April 2017 - 31 March 2018
10. We have disclosed to you all known actual or possible litigation and claims whose effects
should be considered when preparing the Financial Report.
11. There are no other liabilities that are required to be recognized and no other contingent
assets or contingent liabilities that are required to be disclosed in the Financial Report in
accordance with the The Agreement and the audit instructions of Mazars Paardekooper
Hofmann N.V.
Sincerely,
Enclosures:
Schedule of
uncorrected misstatements
Oxfam Novib - audit instructions ’Empowering Youth for Work’
Project period 1 April 2017 - 31 March 2018