Course Description

Statutory or external auditors commonly communicate deficiencies in internal control that the auditor has identified during the audit and that, in the auditor’s professional judgment, are of sufficient importance to merit the attention of management and those charged with governance of a corporation through management letters. While auditors do not express any opinion on the matters communicated via management letters, these matters are significant for management and those charged with governance to take note of and subsequently take appropriate action to address the deficiencies in an effective and timely manner.

This is especially essential for internal control relevant to the preparation of the financial statements. In this e-learning session, we will understand the purpose and scope of management letters issued by auditors, what management and those charged with governance should look out for in management letter points and the importance of addressing matters raised by the auditor in their communication. 

Learning Outcomes:

• Understand the purpose and scope of management letters issued by auditors in accordance with SSA 265 Communicating Deficiencies in Internal Control to Those Charged with Governance and Management;
• Examine management letter points that are commonly issued by auditors and what management and those charged with governance should look out for;
• Understand the steps that management and those charged with governance should take to address the deficiencies in internal control identified and reported by auditors;
• Assess the implication of matters raised by auditors, especially those related to the preparation of the financial statements