What is the name of the report that provides recommendations on improving internal controls and accounting procedures, typically provided by auditors?

The report that provides recommendations on improving internal controls and accounting procedures, typically provided by auditors, is known as a management letter. This type of document accompanies an audit report, and its primary purpose is to communicate operational deficiencies, suggest improvements, and enhance the efficiency and effectiveness of an organization’s internal controls and accounting processes. It not only highlights the areas that require attention but also serves as a constructive tool for management to strengthen their financial operations.

In contrast, an audit report primarily presents the auditor's opinion on the financial statements' accuracy and compliance with relevant accounting standards, without getting into detailed procedural recommendations. Financial statements are formal records of the financial activities of an organization, reflecting its performance and position at a specific point in time, rather than offering insights into internal controls. A compliance report would focus on whether an organization complies with laws, regulations, and policies, without necessarily providing recommendations for improving internal operations. Therefore, the management letter distinctly serves a vital role in advising management on enhancing the reliability and integrity of financial reporting and operations.