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Management Letters:
At the completion of the audit program the auditors provide Management letter which contain relevant information about accounting and management issues in the entity. The review of these letter will help the management to strengthen its internal control as it contains identified deficiencies in the system in general, mainly the avenues of inappropriate access to information that it to be handled in a restricted way. The recommendations provide helpful insight over many issues.
Management representation Letter:
This is also prepared by the external auditors, to get a copy of which signed by the management, to keep with the records of the auditor as an audit evidence. The letter endorse the financial statements supplied by the company to the auditor as also regarding the supply of relevant information to the finanancial statements that they supplied adequately. The letter is signed following the completion of audit fieldwork, and before the financial statements are issued along with the auditor's opinion.
The intent of the management representation letter is to shift some of the legal burden of issuing inaccurate financial statements from the auditor to the company. For this reason, the statements that the auditor includes in the letter is quite broad ranging, encompassing every possible area in which management's failings could lead to the issuance of inaccurate or misleading financial statements.
The statements commonly included in a management representation letter include the following:
Management representation letter signed by the managment stating that all the information provided to auditor is accurate and correct. after getting the mangt represenatation letter auditor signed the auditor report
A management report is issued by the external auditor to the management while management representation letter is the claims of the management regarding financial statement; called "financial statement assertions".
The management report is issued by the BOD/Management whereas the Management Letter (ML) is issued by the external auditors.
Agree with Mr. Venkitaraman<<<<<<<<<<<
Good answers
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Agree with Mr. Venkitaraman Krishna. Well explained
Managemnet Report:- A report which is submitted by the External Auditors afetr competing their Audit. This report contains Audit's observations for review and information of senior managemnet of the Company.
Managemnet Representation Letter:- A letter written by the Extternal Auditors of the Company to which attests the accuracy of financial statemnets of the company. This letter is signed by the Auditors and senior managemnet of the company.
Agree with mr Venkitara ,,,,,,,,,,,,,,,,,