Report to management on control deficiencies
A report to management communicates audit findings or control deficiencies and, where appropriate, their consequences and recommended actions. The required recipients, form and timing depend on the significance of the matters and applicable standards.
Worked example
The auditor reports that one employee can amend supplier bank details and approve payments, explaining the fraud risk and recommending independent approval.
Common mistake
A management representation letter is written by management to the auditor; it is not the auditor’s report of findings to management.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |