SA 260: Communication with those Charged with Governance : This Standard deals with the auditor’s responsibility to communicate with those charged with governance in Auditor should communicate about Overall scope of audit; selection of/ changes in significant accounting policies; potential effect on financial statements of any significant risks and exposures, such as pending litigation; adjustments to financial statements arising out of audit that have a significant effect on entity’s financial statements; material uncertainties related to events and conditions that may cast
significant doubt on entity’s ability to continue as a going concern, disagreements with management about matters that could be significant to entity’s financial statements or auditor’s report; expected modifications to auditor’s report. Auditors should communicate matters of governance interest on timely basis. Auditor’s communication may be made orally or in writing. In case of oral communication, auditor should document their oral communications and response thereof
IAASB All available Translations: Croatian French French Latvian Lithuanian + View All In Progress Translations: Danish | Greek | Spanish | Thai Don't see your language? Request permission to translate Revisions to this ISA are as a result of new ISA 701, Communicating Key Audit Matters in the Independent Auditor’s Report. ISA 260 (Revised) deals with the auditor’s responsibility to communicate with those charged with governance in an audit of financial statements. ISA 260 (Revised) is effective for audits of financial statements for periods ending on or after December 15, 2016.
 DOWNLOAD PDF (196K) Copyright © 2022 The International Federation of Accountants (IFAC). All rights reserved. Related Resources
Get the latest updates delivered to your inboxSubscribe now Translations & PermissionsLooking to reproduce the standards for your members? Want to include IFAC's publications in your training materials or university course? Learn how we can help. IP permissions and policies What matters are communicated to those charged with governance?05 The auditor must communicate with those charged with governance matters related to the financial statement audit that are, in the auditor's profes- sional judgment, significant and relevant to the responsibilities of those charged with governance in overseeing the financial reporting process.
Which of the following matters is an auditor required to communicate to those charged with governance?The auditor is required to inform those charged with governance about misstatements discovered by the auditor and not subsequently corrected by management. This communication should include management changes in the application of significant accounting policies.
What are the responsibilities of those charged with governance?Those charged with governance are responsible for the prevention and detection of fraud and error. It is not possible to achieve absolute assurance against fraud and error, but the implementation and continued operation of adequate accounting and internal control systems may reduce the likelihood of such occurrences.
What must auditors of public companies report to those charged with governance?What must auditors of public companies report to those charged with governance? The items to be communicated are organized into three categories: the auditor's responsibilities under generally accepted auditing standards, an overview of the planned scope and timing of the audit, and significant findings from the audit.
|
