The purpose of management letters is to
A) confirm the terms of the audit engagement.
B) set out the responsibilities of management and the auditor in regards to the audit.
C) discuss weaknesses in internal control and other matters discovered in the audit.
D) make recommendations of substantive procedures to be conducted.

Question

Quizplus · Accepted Answer

The purpose of management letters is to discuss weaknesses in internal control and other matters discovered in the audit, so option C is correct. Option A is incorrect as the purpose of engagement letters is to confirm the terms of the audit engagement. Option B is incorrect as this information is generally contained in the engagement letter or other documentation. Option D is incorrect as substantive procedures are determined during the planning stage of the audit and do not typically appear in management letters.

The Purpose of Management Letters Is to