To whom should the audit announcement memo be specifically addressed?

The audit announcement memo should be specifically addressed to the head of the audited entity because this individual is typically responsible for the overall management and operations of the organization being audited. By addressing the memo to the head of the entity, it ensures that the primary decision-maker is informed about the upcoming audit, understands its scope and objectives, and is prepared to allocate necessary resources and support for the audit process.

This person is also essential for facilitating access to information and personnel within the audit's timeframe, making their informed involvement critical for the audit's success. Notifying the head of the audited entity establishes a direct line of communication and reinforces the importance of the audit within the organizational structure.

While the audit committee, external auditor, and compliance manager play significant roles within the audit process, their involvement typically aligns with the oversight, execution, or regulatory aspects rather than the direct management of the audit logistics and coordination. Thus, addressing the memo to the head of the audited entity ensures that accountability and authority are clearly established at the outset of the audit.