The letter drafted by the auditor which reports observations to management which may help management perform more effectively is referred to as which of the following?
A)the letter of reportable conditions.
B)the representation letter.
C)the management letter.
D)the contingent events document.

Question

Quizplus · Accepted Answer

The management letter is a communication from the auditor to the management of the entity being audited that communicates observations, recommendations, or suggestions that may help management perform more effectively. This letter is not required by auditing standards, and is usually provided in addition to the auditor's report. The letter of reportable conditions is a different type of communication from the auditor that is required by auditing standards, and the representation letter is a letter from management to the auditor that addresses certain matters related to the audit. The contingent events document is not a common term used in auditing.

The Letter Drafted by the Auditor Which Reports Observations to Management