Auditing Essay example
Finance & Accounting
Pages 3 (753 words)
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Author Tutor Course Date #1 Management Letter When an auditor addresses a letter to a client, it is called a management letter. The content of this letter is the conclusions drawn by the certified public accountant concerning the accounting procedures and policies of a company, its internal policies, as well as the internal controls.


A report by an auditor is a complete review by a third party of the financial position and bookkeeping practices of a company as well as financial statements’ preparation. These financial statements include the statement of cash flows, the income statement and the statement of financial position of a company. In dissimilar contexts, other forms of reports may consist of a concise address to users known as the management letter (Ruppel 145). Every year, all public companies are obliged to publish and file some financial statements, a management letter inclusive, in order to meet regulatory standards and to report to the investors the activities of the company. Other companies, other than the public corporations, do prepare financial statements in the normal day to day running of the business. However, these companies are not obliged to display the information for public reviews or even to file their report with the authority. Despite that the financial statements can be generated at any given time; they are produced periodically by a certified public accountant as a component of the audit process. According to the law, a company should hand over its books at given intervals; an audit is a vital part of the restrictive control of public companies. ...
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