March 30, 2008

 

Attorney Name

P.O. Box 75609

Sage, Texas 76031

 

Our auditors, ______________________________ are conducting an annual audit of our financial statements.  Please furnish to them the information requested below involving matters as to which you have been engaged and to which you have devoted substantive attention on behalf of the Company in the form of legal consultation or representation.

 

Pending or Threatened Litigation, Claims, and Assessments

(excluding unasserted claims and assessments)

 

Please prepare a description of all material litigation, claims, and assessments (excluding unasserted claims and assessments). Materiality for purposes of this letter includes items involving amounts exceeding $________. individually or in the aggregate. The description of each case should include:

 

      a.   the nature of the litigation~

 

      b.   the progress of the case to date,

 

      c.   how management is responding or intends to respond to the litigation, e.g., to contest the case vigorously or to seek an out-of-court settlement, and

 

      d.   an evaluation of the likelihood of an Unfavorable outcome and an estimate, if one can be made, of the amount or range of potential loss.

 

Unasserted Claims and Assessments

 

We have represented to our auditors that there are no unasserted possible claims or assessments that you have advised us are probable of assertion and must be disclosed in accordance with Statement of Financial Accounting Standards No. 5 (excerpts of which can be found in the ABA's ~Auditor's Letter Handbook").

 

We understand that whenever, in the course of performing legal services for us with respect to a matter recognized to involve an unasserted possible claim or assessment that may call for financial statement disclosure, if you have formed a professional conclusion that we should disclose or consider disclosure concerning such a possible claim or assessment, as a matter of professional responsibility to us, you will so advise us and will consult with us concerning the question of such disclosure and the applicable requirements of Statement of Financial Accounting Standards No. 5. Please specifically confirm to our auditors that our understanding is correct.

 

 

 

 

 

 

Response

 

Your response should include matters that existed as of March 31, 2007, and during the period from that date to the effective date of your response. Please specify the effective date of your response if it is other than the date of your reply.

 

Please specifically identify the nature of, and reasons for, any limitations on your response.

 

Our auditors expect to have the audit completed on March 1, 19X4, and would appreciate receiving your reply by that date with a specified effective date no earlier than February 15, 19X4.

 

 

 

Other Matters

 

Please, also indicate the amount we were indebted to you for services and expenses on March 31, 2007.

 

 

 

 

______________

Title