State Whether the Following Are True or False

Short Answer

State whether the following are true or false
The purpose of a management letter is to provide good audit evidence about the state of the company's finances
A significant deficiency in internal control is one which must be reported to the management or those charged with governance
A Type 2 report is useful when evaluating service providers where a company has outsourced services but it is does not replace independent audit evidence
Auditors may rely on representations made by the directors in identifying related parties as they are often very difficult to identify