• Transmittal or cover letter
• Executive summary
• Addressee
• Deficiencies
• Implication of deficiencies
• Recommendation
• Risk rating of deficiencies
• Conclusion
                                                                                                                                                                                  (Any 3 points)

ISA 265 requires that communication of deficiencies on internal control to management must be in written form by way of a letter. It is this letter that is referred to as the management letter.
Contents

• The list of weakness in the structure of accounting system and internal controls eg. there may be no serial numbering of sales invoice so that it is possible for a sales invoices to be lost and not be entered in the records.
• A list of deficiencies in operation of the records or controls.
• Unsuitable accounting policies and practices
• Non-compliance with accounting standards or legislations
• Explanations of the risks arising from each weakness.
• Comments on inefficiencies as well as weaknesses.
• Recommendations for improvement