Although there is no professional requirement to do so on audit engagements, auditors normally issue a formal 'management letter' to their clients.This letter:
A) demonstrates to management that the audit firm adds value beyond the audit service.
B) encourages a better relationship between the audit firm and management, and suggests additional services that the firm can provide.
C) provides a written record of the auditor's observations and suggestions for improvement.
D) all of the above

Question

Quizplus · Accepted Answer

The management letter serves multiple purposes, including demonstrating to management that the audit firm adds value beyond the audit, encouraging a better relationship between the audit firm and management by suggesting additional services that the firm can provide, and providing a written record of the auditor's observations and suggestions for improvement. Therefore, all of the given choices are correct.

Although There Is No Professional Requirement to Do So on Audit