Page 353 - Auditing Standards

As of December 15, 2017
noted, and I disclaim any undertaking to advise you of changes which thereafter may be brought to my

attention or to the attention of the lawyers over whom I exercise general legal supervision.

This response is limited by, and in accordance with, the ABA Statement of Policy Regarding Lawyers'
Responses to Auditors' Requests for Information (December 1975); without limiting the generality of the

foregoing, the limitations set forth in such Statement on the scope and use of this response (Paragraphs 2
and 7) are specifically incorporated herein by reference, and any description herein of any "loss
contingencies" is qualified in its entirety by

Paragraph 5 of the Statement and the accompanying Commentary (which is an integral part of the
Statement). Consistent with the last sentence of Paragraph 6 of the ABA Statement of Policy, this will confirm
as correct the Company's understanding that whenever, in the course of performing legal services for the

Company with respect to a matter recognized to involve an unasserted possible claim or assessment that
may call for financial statement disclosure, I have formed a professional conclusion that the Company must
disclose or consider disclosure concerning such possible claim or assessment, I, as a matter of professional

responsibility to the Company, will so advise the Company and will consult with the Company concerning the
question of such disclosure and the applicable requirements of Statement of Financial Accounting Standards
No. 5. [Describe any other or additional limitation as indicated by Paragraph 4 of the Statement.]

Very truly yours,

Footnotes (AS 2505 - Inquiry of a Client's Lawyer Concerning Litigation, Claims, and Assessments):

[1] [Footnote deleted.]

2 FASB Statement No. 5 [AC section C59], also describes the standards of financial accounting and

reporting for gain contingencies. The auditor's procedures with respect to gain contingencies are parallel to
those described in this auditing standard for loss contingencies.

3 An example of a separate letter is as follows: We are writing to inform you that (name of company) has
represented to us that (except as set forth below and excluding any such matters listed in the letter of audit
inquiry) there are no unasserted possible claims that you have advised are probable of assertion and must be
disclosed in accordance with Statement of Financial Accounting Standards No. 5 [AC section C59] in its financial
statements at (balance sheet date) and for the (period) then ended. (List unasserted possible claims, if any.)

Such a letter should be signed and sent by the auditor.

4 An illustrative inquiry letter to legal counsel is contained in the Appendix (AS 2505A).

5 It is not intended that the lawyer be requested to undertake a reconsideration of all matters upon which he

was consulted during the period under audit for the purpose of determining whether he can form a conclusion

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