Audit Matters of Governance Interest to Audit Matters of Governance Interest to be Communicated

Audit Matters of Governance Interest to be Communicated

15 The auditor shall consider audit matters of governance interest that arise from the audit of the financial report and communicate them with those charged with governance.

16 Audit matters of governance interest ordinarily include such matters as the following:[2]

• The general approach and overall scope of the audit, including any expected limitations thereon, or any additional requirements.
• The selection of, or changes in, significant accounting policies and practices that have, or could have, a material effect on the entity’s financial report.
• The potential effect on the financial report of any material risks and exposures, such as pending litigation, that are required to be disclosed in the financial report.
• Audit adjustments, whether or not recorded by the entity that have, or could have, a material effect on the entity’s financial report.
• Material uncertainties related to events and conditions that may cast significant doubt on the entity’s ability to continue as a going concern.
• Disagreements with management about matters that, individually or in aggregate, could be significant to the entity’s financial report or the auditor’s report. These communications include consideration of whether the matter has, or has not, been resolved and the significance of the matter.
• Expected modifications to the auditor’s report.
• Any other matters agreed upon in the terms of the audit engagement.

17 The auditor shall inform those charged with governance of those uncorrected misstatements aggregated by the auditor during the audit that were determined by management to be immaterial, both individually and in the aggregate, to the financial report taken as a whole.

18 The uncorrected misstatements communicated to those charged with governance need not include the misstatement below a designated amount.

19 As part of the auditor’s communications, those charged with governance are ordinarily informed that:

(a) the auditor’s communications of matters includes only those audit matters of governance interest that have come to the attention of the auditor as a result of the performance of the audit; and

(b) an audit of a financial report is not designed to identify all matters that may be relevant to those charged with governance. Accordingly, the audit does not ordinarily identify all such matters.