Audit and Assurance Practice Exam 2026 – Complete Prep Resource

Audit findings are typically communicated to stakeholders through management letters, audit reports, and presentations. This multifaceted approach ensures that the findings are presented in a comprehensive manner, allowing stakeholders to fully understand the issues identified during the audit process.

Management letters often accompany the audit report and detail specific observations or recommendations made by the auditors, providing stakeholders with actionable insights. Audit reports present a formal summary of the audit's results, including the auditor's opinion on the financial statements and any significant issues encountered during the audit. This formal documentation serves as a key reference point for stakeholders in assessing the financial health and compliance of the organization.

Presentations can complement these written communications by allowing auditors to explain their findings in a more interactive format. This gives stakeholders the opportunity to ask questions and engage in discussions about the audit findings, promoting clarity and understanding.

In contrast, relying only on formal reports submitted would limit communication, as it might not engage stakeholders effectively. Email notifications to auditors are more administrative than informative and do not serve to communicate findings to stakeholders. Similarly, while verbal discussions at meetings may provide immediate information, they are not a comprehensive method for documenting and communicating all findings and recommendations. Thus, the combination of written reports and presentations provides a thorough and effective means of communication to stakeholders.