What is the term for a formal letter from an auditor that lists deficiencies in a company’s accounting records and controls?

The term for a formal letter from an auditor that lists deficiencies in a company’s accounting records and controls is known as audit points. This document is typically prepared after an audit is conducted, highlighting areas where the company may have weaknesses or non-compliance in its financial practices. Audit points serve as a constructive feedback mechanism, helping the organization to improve its accounting processes, enhance internal controls, and ensure compliance with relevant regulations.

This formal communication not only identifies problems but often includes recommendations for how to address these deficiencies, making it a valuable tool for management to bolster financial transparency and accountability. The importance of this letter in the auditing process is paramount, as it promotes operational improvements and mitigates risks related to financial reporting errors or fraud.