Auditors' Recommendations Letter

Parsley Sage Rosemary & Ginsburg llp

“always a reasonable result for a reasonable fee, always”

MEMORANDUM

To:	Accounting Department
From:	Mike Marget
Date:	April 20, 2012
Re:	The Auditors are Coming! -- Auditors’ Recommendations Letter

Let’s be honest with ourselves.  No accounting operation is perfect.  This is why we are committed to continuous improvement and adopting “best practices” which make sense.

In the course of their work on the firm’s financial statements for last year, the auditors made notes of things they wish to discuss with us aimed at improving our operations.  These are compiled in a document referred to as the Recommendations Letter.  You will note the Letter’s format is organized as follows:

·        Brief description of the recommendation and the underlying factors, events or transactions underlying the recommendation; and

·        Brief description of the Accounting Department’s position as to the recommendation – i.e., whether we support the recommendation or oppose it and the basis for such opposition.

Attached is the list of recommendations the auditors propose including in their Recommendations Letter which will be discussed with the Management Committee following the conclusion of the audit.  I would like your views on each recommendation.

In past years, I have sometimes talked the auditors out of including certain items in their Letter.  Occasionally, I have opposed a recommendation which they have made.  Several times I have suggested they include items which they did not identify on their own.  For instance, this year, I plan will be asking them to include a recommendation that the firm move from mailing paper invoices to exclusive use of email for client invoicing; their support of this initiative will make it easier to implement when the proposal goes to all partners.