While There Is No Professional Requirement to Do So on Audit

question 43

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)a written record of discussions between auditor and client concerning the auditor's observations and suggestions for improvements.
• D)a summary of the auditor's observations that resulted from the auditor's special study of internal control.

---

Definitions:

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome, often reflecting a reaction to stress.

Inhibitions

Psychological mechanisms that restrain or suppress certain behaviors, impulses, or desires.

Rambling Speech

Speech that is long-winded, unfocused, or disconnected from the main topic, making it difficult to follow.

Schizophrenia

A chronic and severe mental disorder that affects a person's thinking, feeling, and behavior, leading to hallucinations, delusions, and disordered thinking.