The major result of a financial audit conducted by an independent accountant is the expression of an opinion by the auditor on the fairness of the financial statements. While the auditor's report containing the opinion is the best known report issued by the independent auditor, other reports are often prepared during the course of a normal audit. One such report is the management letter (informal report).

Required:

a. What is the purpose of a management letter?

b. Identify the major types of information that are likely to be covered in a management letter. Support your answer with a detailed example of one of the types identified above.