While There Is No Professional Requirement to Do So on Audit

question 140

Multiple Choice

While there is no professional requirement to do so on audit engagements, CPAs frequently issue a formal "management" letter to clients. The primary purpose of this letter is to provide

• A) evidence indicating whether the auditor is reasonably certain that internal accounting control is operating as prescribed.
• B) a permanent record of the internal accounting control work performed by the auditor during the course of the engagement.
• C) the client with the CPA's recommendations for improving any part of the client's business.
• D) a summary of the auditor's observations that resulted from the auditor's special study of internal control.

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Definitions:

Specific Aspect

Refers to a particular detail or characteristic within a broader topic.

Elaboration

The process of adding more detail or information to something, often making it more complex or comprehensive.

Self-references

Involve creating connections or associations with oneself, often used as a mnemonic strategy to enhance memory.

Physical Characteristics

The observable traits or features of an entity, including its shape, size, texture, and color.