Although There Is No Professional Requirement to Do So on Audit

question 73

Multiple Choice

Although there is no professional requirement to do so on audit engagements, auditors normally issue a formal 'management' letter to their clients. This letter serves the following purpose/s:

• A) to provide a written record of the auditor's observations and suggestions for improvement.
• B) to encourage a better relationship between the audit firm and management and to suggest additional services that the firm can provide.
• C) to demonstrate to management that the audit firm adds value beyond the audit service.
• D) all of the above

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Definitions:

Hostile

Characterized by antagonism or opposition, often resulting in unfriendly or aggressive behavior.

Uncooperative

Characteristic of an individual or entity that is not willing to work with others or follow instructions.

Anxious

Feeling or showing worry, nervousness, or unease about something with an uncertain outcome.

Depression

An emotional disorder identified by an ongoing feeling of sadness or a disinterest in pursuits, resulting in a notable detriment to daily activities.