Evan and Sally are completing their first audit of internal control for Newsome Enterprises, and are discussing issuance of the management letter with the audit partner assigned to the engagement, Rodney. Evan and Sally are not familiar with a management letter and ask Rodney to explain its overarching purpose. Which of the following statements by Rodney represents the most appropriate response to this query?

The purpose of a management letter is to indemnify the external auditors against any future lawsuits against the client pertaining to internai control.

Issuance of a management letter by the auditor is typically only required for public companies, in which case a copy is sent to the Securities and Exchange Commission.

The auditine firm uses mamagement letters to communicate deficiencies and weaknesses in internal control to client management. who are then tasked with fixing any noted issues.

None of these answer choices are correct.