Which of the following is false regarding the management letter?
A)The management letter is not required
B)The management letter is the same as the management representation letter.
C)The management letter helps to provide management comfort that the auditor has done a quality job.
D)The management letter helps provide management with information that the auditor knows and understands the client's business.

Question

Quizplus · Accepted Answer

The management letter is not the same as the management representation letter. The management representation letter is a letter written by management to the auditor to confirm certain representations. The management letter, on the other hand, is a letter issued by the auditor to management, which provides recommendations for improving the client's internal controls and other areas of the business. Choices A, C, and D are true statements about the management letter.

Which of the Following Is False Regarding the Management Letter