The management letter:
A) spells out to the audit committee the auditor's responsibilities under generally accepted auditing standards.
B) must follow the format prescribed by the ASIC.
C) is optional and is intended to help the client operate its business more effectively.
D) is required by ASA 580 whenever there are 'reportable conditions'.

Question

Quizplus · Accepted Answer

The management letter is optional and is used by auditors to provide recommendations to the client for improving business operations, rather than being a requirement or following a prescribed format.

The Management Letter