X

My name is Lyanne and I’m the managing director of Wilds. Happy new year to you all! Are you going to make 2020 one of the best years? What new year’s resolutions have you made? We’d love to hear what they are and to put a plan in place to help you to achieve them. Come in for a coffee and a chat and get the year off to a good start. Contact us now.

 

Understanding the Management Letter

Your auditor’s report may say that the financial statements are fairly stated in accordance with relevant standards. So why are you given a letter which highlights deficiencies and weaknesses?

The management letter can provide ideas about ways to improve operations and highlight any risks and opportunities.  The management letter should be viewed as a value-added “bonus” to the audited financial statement.

This may cover a broad range of topics, including segregation of duties, account reconciliations, physical asset security, credit policies, employee performance, and expense reduction.

The core element is to provide recommendations for improvement. Pay close attention to the management letter as too often, the same items recur year after year, indicating that there are improvements to be made.

Used properly, the Management Letter can be a beneficial tool for assisting management or those charged with governance in fulfilling their responsibilities.

css.php