Acceptance Letter for Audit Findings
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ScribdTranslationsAcceptance Letter for Audit Findings
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ScribdTranslationsLETTER OF ACCEPTANCE
Bogotá, November 19, 2019
Sir:
Modular Kasay S.A.S
Auditors:
Cristian Fabian Castillo
Brayan Javier Ospina Solano
Kevin Damian Lombana Penagos
Address:
Warm greetings,
In relation to the comprehensive general audit, corresponding to the checklist.
of the training project of the company Confecciones Import Ltda as of November 19
from 2019, the following manifestations resulting from are confirmed to you
course of said audit:
We are responsible for the reasonable presentation in the financial statements.
financial, equity, the results of the operations, accounting supports
policies, institutional, payroll, cost statement, sales budget
the cash flows according to the International Audit Standards
(NÍAS) (210-220-230-240-260-300-320-330-450-500-501) regulated in decree 302
from 2015, following the provisions of (indicate the agencies whose regulations
govern the preparation of the entity's financial statements). Likewise, the
financial disclosures, match with the accounting and financial records, the
that have been carried out in all their formal aspects in accordance with the
current legal provisions.
We have made available to you:
All accounting, financial, legal, and auxiliary records, and all the
related documentation.
All the minutes of the Shareholders' Assembly meetings.
There are no irregularities involving Confecciones Import Ltda probable or
possible, that should be disclosed or considered in the financial statements or
in their notes, there are none:
Claims, lawsuits or settlements against Confecciones Import Ltda
probables or possible, which should be exposed or considered in the
financial statements or in their notes.
Claims or determinations in tax or social security matters.
Views or observations from corporate or jurisdictional regulatory bodies
for non-compliance with legal, regulatory, or statutory norms of
any type.
We have also provided them with verbal and written information about the elements.
substantial elements that are part of the current internal control system,
The financial statements include the balances of all accounts
banking, of which Confecciones Import Ltda is the holder.
The balances reflected in the credit balance of the statement of financial position.
they constitute legitimate accounts receivable and do not include:
Pending or conditional approvals.
Amounts corresponding to sales operations after the date
of closing the fiscal year.
The credits that have been determined as uncollectible have been written off or
provided as appropriate.
There is no agreement with financial institutions that involve restrictions on the
cash balances, lines of credit or similar agreements.
To the best of our knowledge and understanding, no events have taken place after the 19th.
from November 2019, and up to the date of this letter, that may require adjustment,
the breakdown in the aforementioned information.
Omar Muñoz.
Omar Muñoz.
LEGAL REPRESENTATIVE
Common questions
Powered by AIPost-November 19 events requiring adjustment could affect the integrity of financial statements by altering the reported figures, which may affect stakeholders' decisions. Ensuring these events are considered before finalizing the statements is critical for maintaining accurate and reliable financial reporting .
The document mentions that credits identified as uncollectible have been either written off or provided for appropriately in the financial statements. This measure ensures that the accounts receivable accurately reflect the amounts that are expected to be collected .
Including information related to claims, lawsuits, or settlements in financial statements is significant as it provides stakeholders with a complete and transparent picture of potential financial liabilities. Omitting such details might lead to inaccurate assessment of the company's financial health and mislead investors regarding potential risks .
If Confecciones Import Ltda. fails to respond to regulatory observations concerning non-compliance, it could face legal and financial penalties, damage to reputation, and loss of investor confidence. Regulatory oversight ensures companies adhere to legal and ethical standards, and non-response may indicate underlying organizational issues .
The letter of acceptance assigns the responsibility for the reasonable presentation of the financial statements, which includes financial, equity, results of operations, and accounting supports policies. These responsibilities are to be carried out in accordance with the International Audit Standards (NÍAS) and regulated decrees, ensuring compliance with legal provisions .
International Audit Standards (NÍAS) influence the auditing process by providing a framework and guidelines for the reasonable presentation of financial statements and ensuring that all financial disclosures match the accounting records. These standards, as mentioned, guide the procedures and rules applied during the audit to maintain alignment with internationally recognized practices .
It is crucial to disclose any irregularities or claims to ensure transparency and integrity in financial reporting. Such disclosures help in providing a true and fair view of the company's financial position, which is essential for stakeholders' trust and for making informed decisions. Failure to disclose can lead to legal consequences and damage to credibility .
Verbal and written communications regarding internal control systems are vital in the audit process as they provide auditors with insights into how financial data is managed and protected against inaccuracies and misstatements. Such communications help establish audit trail credibility and support the auditor's evaluation of risk and control effectiveness .
Ensuring that credit balances exclude pending approvals or post-closing sales operations is crucial for accuracy in a company's financial reporting. This practice prevents overstatement of assets or revenues, allowing stakeholders to rely on precise financial information to assess the company's financial health .
Including the balances of all banking accounts in financial statements is important to ensure the completeness of the financial records. It helps provide an accurate picture of the liquidity and financial position of the company, which is essential for stakeholders to assess the company's operational efficiency and financial viability .
