AAA – July 2023 – L3 – Q5c – Reporting | Evaluation and review

Requires drafting a management letter addressing the issue of fixed assets not being embossed with identification codes at BTL Plc.

Question

During an audit engagement, it was observed that the Fixed Assets of BTL Plc were not embossed with a code of identification.

Required:

Draft a management letter relating to the issue above. (5 marks)

Answer

Management letter

Observation: In the course of our audit, we observed that the following fixed assets were not embossed. See appendix…

Effect: This could lead to theft and some assets not accounted for.

Management Response: Management has taken note of observation and will ensure that all assets are embossed by (date).