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You have been the auditor of Baobab Trading Company Ltd. for several years. The company’s head office is in Nairobi, Kenya, and it has considerable overseas operations. At each accounting year-end, there are large debts due from overseas agents of the company (Sh. 270 million out of total debts of Sh. 680 million as of 31 December 2020). In the past, these debts have always been settled after year-end but you have insisted that the debts be the subject of a specific representation made by the company’s director.


Draft a paragraph for a letter of representation appropriate to the circumstances described above.


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