As the auditor, you have the responsibility to provide the Board of Take-Two Interactive Software with a management letter (refer to Exhibit III), identifying any control deficiencies, Significant deficiencies, and/or material weaknesses noted during the audit. Please fill out the bold sections. Please note that based on your interpretation of the case, you need to identify whether the issues are control deficiency, significant deficiency, or material weakness or whether all of them apply. Carefully read the bold highlights to ensure you fill out the letter correctly.

To Management and [identify the body or individuals charged with governance, such as the entity's Board of Directors] of ABC Company.

In planning and performing our audit of the financial statements of ABC Company (the "Company") as of and for the year ended December 31, 20XX, in accordance with auditing standards generally accepted in the United States of America, we considered the Company's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, we do not express an opinion on the effectiveness of the Company's internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be [material weaknesses or material weaknesses or significant deficienciesand therefore, [material weaknesses or material weaknesses or significant deficiencies] may exist that were not identified. However, as discussed below, we identified certain deficiencies in internal control that we consider to be [material weaknesses or significant deficiencies or material weaknesses and significant deficiencies].

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. [We consider the following deficiencies in the Company's internal control to be material weaknesses:]

[Describe the material weaknesses that were identified and an explanation of their potential effects.]

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. [We consider the following deficiencies in the Company's internal control to be significant deficiencies:]

[Describe the significant deficiencies that were identified and an explanation of their potential effects.]

[If the auditor is communicating significant deficiencies and did not identify any material weaknesses, the auditor may state that none of the identified significant deficiencies are material weaknesses.]

This communication is intended solely for the information and use of management, [identify the body or individuals charged with governance], others within the organization, and is not intended to be, and should not be, used by anyone other than these specified parties.

Answer rating: 100% (QA)

To Management and Board of Directors of ABC Company In planning and performing our audit of the financial statements of ABC Company the Company as of and for the year ended December 31 20XX in accorda... View the full answer