Auditors` report to those charged with governance – the most important result of the audit process

Author:Lisa WEAVER, ACCA

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Keywords:charged with governance, material weaknesses, scope of the audit, going concern status, accounting and financial reporting function

Abstract:
This article outlines the main features of this communication and summarizes the requirements of ISA 260, Communication of Audit Matters With Those Charged With Governance, and the UK equivalent, ISA 260 (UK and Ireland), Communication of Audit Matters With Those Charged With Governance. \r\nAuditors are required by ISA 260 to communicate audit matters of governance interest to those charged with governance. It is important that those charged with governance have an understanding of all significant issues that have arisen from the audit process.\r\nISA 260 does not specify this exactly, but states that “governance is the term used to describe the role of persons entrusted with the supervision, control and direction of an entity“.\r\nThe communication with those charged with governance should be viewed as a crucial reporting “output“ of the audit allowing the management to be informed of significant matters arising from the audit process, and to respond to the auditor regarding these matters.

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