(c) You have been making preliminary inquiries regarding matters arising from the previous year’s audit of Di Rollo.
It has been revealed that no action has been taken in response to the management letter prepared by the previous
auditors. Di Rollo’s management has explained that this was because it was ‘poorly prepared’ and ‘unhelpful’.
Required:
Briefly describe various criteria against which the effectiveness of a management letter may be assessed.
(7 marks)
