Lesson: Written Communication on Deficiencies

In this lesson, Nick Palazzolo discusses the importance of written communication regarding deficiencies found during an audit. He emphasizes that such communication should ideally be sent by the report release date, if not, then no later than 60 days after the report release date. This communication may also be done during the audit process and should be documented, even if significant deficiencies or material weaknesses were remediated during the audit. Nick also explains that management has a role in determining the cost-benefit decisions related to addressing significant deficiencies or material weaknesses. The auditor's responsibility is to communicate these findings and make recommendations for improvements, regardless of management's decisions. This lesson provides key insights into the various elements that should be included in written communication on deficiencies, emphasizing the importance of thorough documentation in the auditing process.