What is the purpose of providing the DRL to the audited entity in advance?

Providing the Draft Report Letter (DRL) to the audited entity in advance serves primarily to give them ample time to compile any requested items or provide necessary documentation that may be referenced in the audit findings. The advance delivery of the DRL allows the entity to review the content, understand the context of the information being reported, and gather any additional information that may be needed to clarify or substantiate the findings. This process helps to ensure that the audit conclusions are accurate and that the entity has the opportunity to address any potential misunderstandings or findings before the final report is issued.

This approach promotes transparency and collaboration throughout the audit process, enabling the audited entity to fully engage with the audit findings and respond appropriately. By allowing time for this preparation, the audit can be conducted more effectively, which can ultimately enhance the quality of the audit outcomes.