The letter below is provided as an example of the type of audit findings letter to
be issued at the conclusion of the audit assignment.
Example audit findings letter:
Example Limited,
The Quay,
Main Street,
Cork.
XX December 20XX
Dear Sirs,
Dear Sirs/Madams,
The purpose of this letter is to bring to your attention the findings from the recent audit carried out on XYZ Ltd. for
the year ended 31 December 20xx. Because of previous discussions, we appreciate that you will already be aware
of the majority of the matters contained in this letter; however, we are required by Auditing Standards to formally
communicate certain matters to you.
Our audit has been conducted on a test basis and thus we are unable to provide a comprehensive statement of all
weaknesses which may exist in the accounting and internal control systems or of all the improvements which may be
made. We can only address those matters which have come to our attention as a result of the audit procedures
which we have performed.
We draw your attention to the letter of representation which we now request your board to approve and sign.
(Change wording as appropriate).
1. Expected modifications to the audit report
Option 1:
We do not anticipate any modifications to the audit report.
Option 2:
Where a modification to the audit report is anticipated, full details should be provided here.
2. Independence
We can confirm that we have re-evaluated our firm’s independence in connection with the audit. We confirm that
we are not aware of any factors affecting our independence or objectivity and thus our ability to continue to act
as auditor of the company, other than the self-review threats arising from our assistance with the preparation of
the financial statements. These however have been properly addressed by adoption of appropriate safeguards.
3. Unadjusted Misstatements
(Provide details of unadjusted errors).
4. Significant deficiencies in the accounting and internal control systems
During the course of our audit we found some areas in which there were significant deficiencies in the
accounting or internal control system. In the appendix attached to this letter, we provide full details of the
significant deficiencies identified; the potential impact of such deficiencies for the company and our
recommendations to address these matters.
Weaknesses in the accounting and internal control system which we do not consider significant deficiencies
have been communicated to management.
Our examination of the system, which we carry out for the purposes of our audit, does not necessarily disclose
every weakness, and for this reason the matters included in the attached appendix may not be the only
weaknesses which exist in the system.
5. Views about the quality of the accounting practices and financial reporting
We have no matters that we wish to bring to your attention in respect of the quality of the accounting practices
and financial reporting.
6. Matters specifically required by other ISAs (UK and Ireland) to be communicated to the directors
(address where applicable) ,
 Issues identified under the following ISAs (UK and Ireland) should be reported to the board of directors.
 International Standard on Auditing 210 – Terms of Audit Engagements
 International Standard on Auditing 240 – The Auditor’s Responsibilities Relating to Fraud in an Audit of
Financial Statements
 International Standard on Auditing 250A – Consideration of Laws and Regulations in an Audit of Financial
Statements
 International Standard on Auditing 250B – The Auditor’s Right and Duty to Report to Regulators in the
Financial Sector ISA 260 – Communication with Those Charged With Governance
 International Standard on Auditing 265 “Communicating Deficiencies in Internal Control to Those Charged
with Governance and Management.
 International Standard on Auditing 315 – Identifying and Assessing the Risks of Material Misstatement
Through Understanding the Entity and its Environment
 International Standard on Auditing 320 – Materiality in Planning and Performing an Audit
 International Standard on Auditing 550 – Related Parties
 International Standard on Auditing 560 - Subsequent Events
 International Standard on Auditing 570 – Going Concern
 International Standard on Auditing 580 – Written Representations
 International Standard on Auditing 720A – The Auditor’s Responsibilities Relating to Other Information in
Documents Containing Audited Financial Statements
 International Standard on Auditing 720B – The Auditor’s Statutory Reporting Responsibility in Relation to
Directors’ Reports
Please note the following important limitations with regard to the content of this letter and attached reports:



They have been prepared for the sole use of Example Limited.
They must not be disclosed or quoted to a third party, in whole or in part, without our prior written consent.
We assume no responsibility to any other person.
We ask that you inform us of the steps you intend to take with regard to the weaknesses identified in the accounting
system and the accounting policy issue set out above.
May we take this opportunity of thanking you and your staff for the assistance offered to us during the course of our
work. If you have any queries regarding the matters raised in this letter, or other issues of concern please contact us
as soon as possible.
Yours faithfully,
ABC & Co.,
Enc
Appendix
Significant deficiencies in the accounting and internal control
systems
Audit finding
Insert details
Risk
Insert details
Recommendation
Insert details
Client response
Insert details