The purpose of the management letter is to inform
A) the auditor with concerns held by the client's management about the audit fee.
B) the client's management of the auditor's opinion on the company's financial statements.
C) the client's audit committee's disagreements with management.
D) the client of the auditor's recommendations for improving its internal controls.

Question

Quizplus · Accepted Answer

The purpose of the management letter is to provide the client with the auditor's recommendations for improving its internal control systems, financial reporting processes, and other issues identified during the audit. It is not related to concerns about the audit fee, the auditor's opinion on the financial statements, or disagreements between management and the audit committee.

The Purpose of the Management Letter Is to Inform