Governance and Management Letters: A Haunted Audit Tale

As Halloween looms, audits bring their own kind of mystery and spookiness with two key letters: the Governance Letter and the Management Letter. But don’t fear them—they’re here to help you uncover hidden haunts!

The Governance Letter: A Flashlight In The Fog

Sent to leadership at the conclusion of an audit, the Governance Letter highlights an organization’s key audit findings, ensuring the board of directors or other governance team is made aware of potential risks, issues, or important items lurking in the shadows. Much like a spooky spellbook, the Governance Letter is an essential tool for guiding leadership through the foggy risks that could haunt an organization.

The Management Letter: Ghostly Reminders

The Management Letter, also known as an Internal Control Letter, is issued on an as needed basis after the completion of an audit. This letter reveals weaknesses in an organization’s system of internal control discovered during the audit process, like cracks in the walls of a haunted house. But don’t fret – the Management Letter provides recommendations on how to seal up those creepy cracks, which can help organizations fix various issues that may be haunting the financial reporting process.

Don’t Fear the Letters – They Are Here To Help

While these audit letters might seem spooky at first, they are actually important protective tools an organization can use against those scary financial bumps in the night. Happy Halloween from the audit team at Wilkins Miller!