One of the key functions of a management letter is to ________.
A)provide management with some idea as to the audit opinion they will likely receive
B)advise management of the auditor's requirements with respect to filing reports with the Securities and Exchange Commission (SEC)
C)attempt to resolve differences of opinion on accounting estimated used by management in which the auditor disagrees
D)inform those charged with governance of the auditor's recommendations for improving its internal controls

Question

Quizplus · Accepted Answer

One of the key functions of a management letter is to inform those charged with governance (such as the board of directors) of the auditor's recommendations for improving the company's internal controls. The management letter is separate from the audit opinion and does not involve advising management on SEC requirements or resolving differences of opinion on accounting estimates.

One of the Key Functions of a Management Letter Is