# Draft a letter communicating internal control deficiencies found in an audit

A clear written communication of control deficiencies to an audit client, classified by severity with practical recommendations.

- Topic: Finance & Accounting
- Framework: Few-Shot
- Level: Standard
- Tags: Communication, Finance, Write, Analyze, Fill-in Template
- Source: https://www.thinkwithprompt.com/prompts/draft-a-letter-communicating-internal-control-deficiencies-found-in

## Prompt

```text
Help me draft the written communication of internal control matters identified during an audit.

**Client and entity type:** [e.g. "private manufacturing company", "nonprofit", "governmental entity"]
**Auditing standards followed:** [e.g. "AICPA GAAS", "Government Auditing Standards"]
**Period audited:** [FISCAL YEAR END]
**Deficiencies found:** [for each: what we observed, the control that was missing or failed, the account or process affected, any misstatement it caused or could cause, and management's initial response]
**Our preliminary severity assessment:** [material weakness / significant deficiency / other deficiency - or "help me assess"]
**Addressed to:** [those charged with governance - e.g. "the audit committee", "the board", "the owner"]

For each deficiency, write:
- Condition: what we found, stated factually.
- Criteria: what a properly designed and operating control would look like.
- Cause and potential effect: why it happened and what could go wrong (reasonable possibility and magnitude of a misstatement).
- Recommendation: a specific, proportionate fix suited to the client's size and staffing (e.g. compensating review controls where segregation of duties is not possible).
- Space for management's response.

Also:
1. Help me test the severity classification with questions about likelihood and magnitude, including whether compensating controls exist.
2. Separate matters that must be in writing from minor items better raised verbally.
3. Include the standard limitations language, marked [INSERT REQUIRED LANGUAGE FROM CURRENT STANDARDS], rather than inventing it.

Keep it factual and non-accusatory. The engagement partner must confirm classifications and required wording against current standards before issuing.
```

## What to fill in

- e.g. "AICPA GAAS", "Government Auditing Standards"
- FISCAL YEAR END
- INSERT REQUIRED LANGUAGE FROM CURRENT STANDARDS

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