ACCA Audit and Assurance (F8) Practice Exam

When is the Report to Management typically sent?

1. Before the audit begins

2. After interim and final audits

3. During the audit process

4. At the commencement of the next fiscal year

The correct answer is: After interim and final audits

The Report to Management is typically sent after both the interim and final audits have been completed. This timing allows the auditor to provide a comprehensive overview of findings, including any control weaknesses, compliance issues, or areas for improvement identified during the audits. By this stage, the auditor has gathered sufficient evidence and insights to form a well-rounded view of the organization’s financial reporting and internal control systems. Delivering the report after the completion of these audit phases ensures that management receives a complete picture, enabling them to take informed actions based on the audit results. This helps in fostering constructive dialogue between management and auditors regarding the organization's performance and any necessary adjustments to processes or practices. In contrast, sending the report before the audit begins would not be feasible, as there would be no audit findings to report. Issuing the report during the audit process could lead to incomplete or inaccurate conclusions since the audit might still be ongoing. Providing the report at the commencement of the next fiscal year would delay necessary communications and recommendations, diminishing the report's practical value for addressing issues in the prior period.