While there is no professional requirement to do so on audit engagements, CPAs frequently issue a formal "management" letter to clients. The primary purpose of this letter is to provide
A) evidence indicating whether the auditor is reasonably certain that internal accounting control is operating as prescribed.
B) a permanent record of the internal accounting control work performed by the auditor during the course of the engagement.
C) the client with the CPA's recommendations for improving any part of the client's business.
D) a summary of the auditor's observations that resulted from the auditor's special study of internal control.

Question

Quizplus · Accepted Answer

The primary purpose of a management letter is to provide the client with the CPA's recommendations for improving any part of the client's business. This letter is not a formal communication required by auditing standards and does not provide evidence or a permanent record of the internal accounting control work performed by the auditor. While a management letter may include observations related to internal control, it is not specifically focused on this area of the audit.

While There Is No Professional Requirement to Do So on Audit