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ISA 260 COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE (OBJECTIVES OF…
ISA 260
COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE
ROLE OF COMMUNICATIONS
AUDITOR & TCWG - in understanding matters related to the audit in context, and in developing a constructive working relationship.
AUDITOR - understanding the entity and its environment, identifying appropriate sources of audit evidence and providing information about specific transactions or events.
TCWG - in fulfilling their responsibility to oversee the financial reporting process
OBJECTIVES OF AUDITOR
To communicate his responsibilities and an overview of the planned scope and timing
To obtain relevant information from TCWG
To provide TCWG with timely, significant, and relevant observations
To promote effective two-way communication
OTHER IMPORTANT MATTERS
EFFECTIVE DATE
December 25, 2016
DEFINITIONS
TCWG - person responsible for overseeing the strategic direction and overseeing the financial process of the company
MANAGEMENT - person with executive responsibility for the conduct of the enitity's operations
DOCUMENTATION
If orally, auditor shall include them in the audit documentation
When in writing, auditor shall retain a copy as documentation
REQUIREMENTS
TCWG
Communication with a Subgroup of TCWG
When all of TCWG are involved in managing the enity
MATTERS TO BE COMMUNICATED
The auditor's responsibilities in relation to the FS audit
Planned Scope and Timing of the Audit
Significant findings from the audit
Auditor independence
THE COMMUNICATION PROCESS
Establishing the communication process
Forms of communication
Timing of Communications
Adequacy of the communication process