The management letter is used:
A)to allow management to document, in writing, oral representations to the auditor.
B)to confirm the terms of the audit engagement.
C)to list all reportable conditions with respect to internal controls.
D)to make recommendations to the entity based on observations made during the audit.

Question

Quizplus · Accepted Answer

The management letter is a report that includes observations made by the auditor during the audit and recommendations for improvement. It is not used to document oral representations or confirm the terms of the engagement. While the report may include reportable conditions with respect to internal controls, this is not the primary purpose of the management letter.

The Management Letter Is Used