The purpose of the management letter is to inform:
A)the auditor with concerns held by the client's management about the audit fee
B)the client's audit committee of disagreements with management
C)the client of the auditor's recommendations for improving its internal controls
D)the client's management of the auditor's opinion on the company's financial statements

Question

Quizplus · Accepted Answer

The purpose of the management letter is to inform the client of the auditor's recommendations for improving its internal controls. This letter is not intended for the auditor nor the audit committee, and it does not provide an opinion on the financial statements. It may include some disagreements with management but its primary purpose is to offer suggestions for improvement.

The Purpose of the Management Letter Is to Inform