a. Reasons for obtaining letters of representation from client’s management include:

i. To support the auditor’s understanding of management’s intention or judgment (for example, in respect of future plans for the business or a specific matter, such as the net realisable value of inventory);

ii. To support the completeness of a specific item (for example, that all liabilities have been provided for); and

iii. To provide additional source of audit evidence in the overall auditing process.

b. If a representation by management is contradicted by other audit evidence, the auditor should:

i. Consider whether his risk assessment of that area is still appropriate;

ii. Consider whether additional audit procedures are needed; and

iii. If he has concerns about the integrity of management, document those concerns and consider withdrawing from the audit.

c. Draft letter of representation

EDINBURG NIGERIA LIMITED

172, Idowu Taylor Street

Victoria Island, Lagos

18 April, 2024

The Managing Partner

Bim Abubakar & Co. (Chartered Accountants) 432 Broad street Lagos

Dear Sir,

RE: AUDIT OF OUR COMPANY’S ACCOUNTS FOR THE YEAR ENDED DECEMBER 31, 2023

In addition to the disclosures in the financial statements and other information presented to you for the audit of our company’s accounts for the year ended December 31, 2023, we wish to provide the following confirmations:

Financial statements

We have fulfilled our responsibilities for the preparation and presentation of the financial statements as set out in the terms of the audit engagement dated November 12, 2023 and, in particular, the financial statements are fairly presented in accordance with International Financial Reporting Standards.

Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable.

We have provided you with:

• All information, such as records and documentations, and other matters that are relevant to the preparation and presentation of the financial statements;

Additional information that you have requested from us; and Unrestricted access to our staff.

All transactions have been recorded in the accounting records and are reflected in the financial statements.

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.

We have disclosed to you all known instances of non-compliance or suspected non-compliance with laws and regulations, whose effects should be considered when preparing financial statements.

We have disclosed to you the identity of the entity’s related parties and all the related party relationships and transactions of which we are aware.

Inventory worth N15 Million in Niger Republic

Your firm is unable to visit Niger Republic because of the ongoing civil unrest in that country. We confirm to you that our inventory is safe and comprehensively insured against all risks, hence no loss is expected on the inventory since the inventory are tangible assets, not perishable or threatened by obsolescence.

Donation of N500,000.00 to Ojota Motherless Baby’s Home (The Home)

We were unable to obtain a receipt as the Home, we were informed, was currently out of stock of receipt booklets. However, we confirm that the donation was approved by our company’s board and the receipt will be obtained once the Home has stock of receipt booklets. The Home has already verbally confirmed to your staff of the receipt of the donation.

Chairman’s medical treatment of N600,000.00

We confirm that our Chairman received medical treatment during his visit to Germany, but did not come back with any documentary evidence. The amount is relatively material, but still within the medical limit of the Chairman as approved by the board. We have written to the hospital in Germany to send to us all documents related to the treatment, We are positive that the documents will be received very soon.

If you require confirmation on any item not included above, please do not hesitate to contact us.

Thank you.

Yours faithfully, For:- EDINBURG NIGERIA LIMITED

Edwin Olusoga Managing Director/CEO

(NOTE: The letter should be on Edinburg Nigeria Limited‟s official letterhead)