17 November 2025
Management letters without the theatre
A useful management letter ranks control points by operational risk and names the owner who can fix each one.
We have seen management letters that read like academic essays and others that bury the only urgent item on page eight. Neither helps a busy finance lead in Taipei closing books while answering group reporting packs.
Our practice is to lead with high-urgency points: missing dual approval on high-value payments, unsigned related-party contracts, or inventory systems that allow negative on-hand balances. Medium and low points follow with a suggested owner and a realistic remediation window.
What we expect from management responses
A one-line ‘noted’ is not a response. Tell us whether you agree, what you will change, and by when. If you disagree, say why — sometimes the auditor’s sample does not represent the population, and that conversation belongs in writing.
Carry-forward points from prior years deserve honesty. If last year’s recommendation still sits open, explain the blocker. Boards notice recurring items; so do successor auditors.