Management Letter Audit Example - Sample - Format

We discuss here about the Management Letter Audit example or sample or format, but first you should know about the Management Letter.

So, it is a letter written by the audit firm in accordance with International Auditing Standards (IAS) to the management of the company describing the deficiencies and recommendations to solve them in accordance with Generally AcceptedAccounting Principles (GAP) and International Financial Reporting Standards (IFRS).

Download Management Letter Audit Example - Sample - Format

Following is the Example / Format of a Management Letter written by XYZ Company, an audit firm, to the management of ABC Company.

Sample / Example / Format of Management Letter

ABC Company

53-Mall Road Lahore

Pakistan

XYZ Company

5-Hall Road, Lahore

Pakistan

We are as audit firm conduct the audit of the financial statements of XYZ Company for the year ended at December 31, 2012 in accordance with International Auditing Standards and follow the Generally Accepted Accounting principles and International Financial Reporting Standards.

During our audit, we noted a certain matter involving internal control system and operations matters that is presented to your consideration. All of the deficiencies and recommendations to solve them are communicated to appropriate member of management.

Our audit procedures are designed primarily to enable us to form an opinion on the financial matters and, hopefully, will be useful to you.

Deficiencies/ Weakness

We find the following weakness in your internal control system:

1.   IT Systems are not updated to maintain privacy.

2.   Expert Computer operators are required to record data.

3.   There is Virus attack on the system.

4.   There is no proper procedures and methods for recording the transactions

Recommendations

We recommend that:

1.   Latest and Updated version of software are installed

2.   Password protection should be in the system to prevent frauds

3.   Top Anti-virus software should be installed to control viruses

4.   IT specialists should be on the job.

5.   Efficient and appropriate procedures are implemented.

This communication is solely for the information of XYZ Company and it is not intended to be used by any other parties other than specified.

Very Truly,

ABC Company

(Audit Firm)

Now after reading above detail discussion about Management Letter Audit Example or Sample or Format, you will learn this letter.