Requiring CPAs to Accompany Financial Statements with Affidavit of Representation

October 28, 1981 TO : All Certified Public Accountants All financial statements to be submitted by corporations to the Securities and Exchange Commission which are required to be certified by an independent Certified Public Accountant, shall in addition to the report of the certifying CPA, be accompanied by an Affidavit of Representation which shall state among others, the following: 1. That the financial statements are presented in conformity with generally accepted accounting principles; That in case of any departure from such principle, he has indicated the nature of the departure, the effects thereof, and the reasons why compliance with the principles would result in a misleading statement, if such is a fact; 2. That he has complied with the independence requirement as provided in Section 14 of the Code of Ethics for CPAs; 3. That in the conduct of his audit, he has complied with the generally accepted auditing standards promulgated by the Board of Accountancy; 4. That in connection with the expression of his opinion, he has not committed acts discreditable to the profession as provided in Section 23 of the Code of Ethics for CPAs. Please be guided accordingly. (SGD.) MANUEL G. ABELLO Chairman