Auditors’ Management Letters – Friend or Foe?


In Lord Agnew's letter to Academy Trust auditors on 15 June 2018, he highlighted that Auditors' Management Letters are "extremely useful tools for a board."

At the annual Auditors’ Conference held in September 2018, Lord Agnew continued this message in his keynote speech by explaining that when he considers key strategic decisions about trusts he always requests the Auditors Management letter for the past two years to ensure that recommendations made by the auditor are reasonable, have been acted upon and that management have completed the actions they promised in the prior year. 

The Education and Skills Funding Agency (ESFA) is also focusing on this matter with additional disclosure required in the accounts cover sheet on submission to the ESFA with the financial statements. This will include the number of points raised by the auditor, the number of points raised in the prior year which remain unresolved and the rating assigned to each point.  

As the audit season is upon us all, it’s time to revisit the prior year Management Letter, consider the management responses given and collate the evidence to show that all recommendations have been appropriately implemented through the year.  

Given the increased focus on Management Letter recommendations made, ensure you work with your auditors to understand the recommendations and that the management responses given are implementable over the coming year. 

For further information please contact Mark Bradley on 01254 686 600 or email

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