Should publicly traded companies be required to publish the management letters that come from the auditors? Why or why not?
Is a qualified audit opinion always a bad thing? Why or why not?© BrainMass Inc. brainmass.com March 4, 2021, 7:59 pm ad1c9bdddf
The management letter contains required correspondence between the auditor and the publicly traded company, which principally consists of internal control weaknesses and recommendations. When an auditor detects a "serious" internal control weakness, they are required to issue a management letter disclosing this fact to the board. The management letter is not rigidly structured, as is the opinion letter, but flexible to accommodate the needs and demands of each audit.
Of more assistance to the publicly traded company are recommendations for improvement in the company's business. An external audit firm is unique in being given access to key individuals and the entire ...
This solution discusses auditing.