Document background
The Audit Management Letter is a essential component of the audit reporting process in the United States, required under professional auditing standards and various regulatory frameworks. This document is typically issued by external auditors upon completion of an audit engagement to communicate significant findings, control deficiencies, and recommendations to those charged with governance. The letter must comply with American Institute of Certified Public Accountants (AICPA) standards, particularly SAS 115, and for public companies, with PCAOB requirements and SEC regulations. It serves multiple purposes: documenting internal control weaknesses, providing recommendations for improvement, tracking prior year issues, and fulfilling regulatory requirements for formal audit communications. The Audit Management Letter is particularly crucial for maintaining transparency in corporate governance and supporting continuous improvement in internal controls and operational efficiency.
