Communications to Management and with ThCommunications to Management and with Those Charged With Governance

Communications to Management and with Those Charged With Governance

1. If the auditor has identified a fraud or has obtained information that indicates that a fraud may exist, the auditor shall communicate these matters, unless prohibited by law or regulation, on a timely basis with the appropriate level of management in order to inform those with primary responsibility for the prevention and detection of fraud of matters relevant to their responsibilities. (Ref: Para. A61-A62)
2. Unless all of those charged with governance are involved in managing the entity, if the auditor has identified or suspects fraud involving:
   1. Management;
   2. Employees who have significant roles in internal control; or
   3. Others where the fraud results in a material misstatement in the financial report,

the auditor shall communicate these matters with those charged with governance on a timely basis. If the auditor suspects fraud involving management, the auditor shall communicate these suspicions with those charged with governance and discuss with them the nature, timing and extent of audit procedures necessary to complete the audit. Such communications with those charged with governance are required unless the communication is prohibited by law or regulation. (Ref: Para. A61, A63-A65)

1. The auditor shall communicate, unless prohibited by law or regulation, with those charged with governance any other matters related to fraud that are, in the auditor’s judgement, relevant to their responsibilities. (Ref: Para. A66)