KPMG AUDIT MANAGEMENT LETTER
November 25, 2055
KPMG LLP
Des Moines, IA 50301
To whom it may concern,
We appreciate [Your Company Name]'s collaboration and professionalism during the 2055 financial statements audit. Your team efficiently supported us by providing required documentation promptly. We've reviewed your internal controls, financial reporting, and accounting practices and have some observations and improvement suggestions.
We found weaknesses in the inventory management system, especially in the reconciliation process, leading to potential stock misstatements affecting financial statements. A stronger inventory tracking system is recommended. Additionally, revenue recognition practices for long-term contracts didn't align with ASC 606, causing timing discrepancies. We advise reviewing contract terms and revenue timing for compliance.
We've identified discrepancies in the Q2 and Q3 2055 tax filings, especially with foreign sales tax, and suggest consulting your tax advisor to correct these before the final submission. Additionally, the fixed asset register was outdated, causing mismatches with physical inventory. Conduct a physical verification and reconcile these to prevent future financial report errors.
We trust that [Your Company Name] will take the necessary actions to address these concerns and implement the recommended changes. These steps will not only strengthen your internal controls but will also enhance the overall reliability of your financial reporting. Please do not hesitate to reach out to us at [Your Email] should you have any questions or require further assistance.
Sincerely,
[Your Name]
KPMG LLP
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