October 23, 2009
Mr. Harvey West
Richard West Co.
1174 U.S. Hwy 64
Dear Mr. West,
I am writing to you to confirm our understanding of the terms and arrangements of our audit for the financial statements of Richard West Co. for the year ending December 31, 2009.
We will be reviewing the financial statements for the year ending December 31, 2009, so that we may express an opinion on how they are presented on fairness, the financial position, results of its operations, and cash flows. The financial statements that will be reviewed include, the Statements of Income, Cash Flows, Balance Sheets, and statements of retained earnings. We will be examining the financial statements to confirm that they are in conformity with generally accepted accounting principles. We will not be providing services in regards to the tax preparation of this company.
We will conduct our audit in accordance with GAAP. These standards require that we have reasonable assurance that the financial statements are indeed free of material misstatements; however, some material misstatements may not be detected. Our audit is not designed to detect fraud or error. However, if fraud is indeed detected, we will be informing the proper personnel of such issues. If we ate unable to complete the audit or are unable to form an opinion, we may decline to express an opinion or issue a report.
When conducting our audit, we will also be obtaining an understanding of internal controls in order to plan the audit. This includes determining the nature, timing, and extent of the procedures that are to be performed.
It is the responsibility of management to establish and perform internal controls of the financial statements, provide us with the pertinent information (the financial statements as stated above in previous paragraphs) needed in order to perform our audit, as well as ensuring that their activities comply with the laws and regulations that apply to their activities. It is also...