The management letter is used
A) To allow management to corroborate 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 used to provide recommendations to the entity based on observations made during the audit, which can include suggestions for improving internal controls or operational efficiency. It is not used to corroborate oral representations or confirm the terms of the engagement. While reportable conditions with respect to internal controls may be included in the letter, this is not its primary purpose.

The Management Letter Is Used