â I nsider tradingâ refers to transactions in a companyâs securities, such as stocks or options, by corporate insiders or their associates based on information originating within the firm that would, once publicly disclosed, affect the prices of such securities.
A: A management letter is an auditor's letter addressed to the client, according to Allbusiness.com. It is a letter written by company management that confirms the accuracy of an audit. An audit is an examination and verification of a company's financial and accounting records and supporting documents presented by a professional, such as a certified public accountant.
A letter of representations cannot be signed earlier than the date of the audit report. Thus, most CPAs, including our firm, issue the letter along with a draft copy of the audit report. The Board should review the audit report and the report of internal controls, as well as any other documentation that is provided.