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Definitions

6 For the purposes of this Auditing Standard, “governance” means the term used to describe the role of persons entrusted with the oversight, control and direction of an entity.[1] “Those charged with governance” includes those persons accountable for ensuring that the entity achieves its objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations, compliance with applicable laws, and reporting to interested parties. Those charged with governance include management only when it performs such functions.

7 “Management” includes officers and others who also perform senior managerial functions. Management includes those charged with governance only in those instances when they perform such functions.

8 For the purpose of this Auditing Standard, “audit matters of governance interest” means those matters that arise from the audit of the financial report and, in the opinion of the auditor, are both important and relevant to those charged with governance in overseeing the financial reporting and disclosure process. Audit matters of governance interest include only those matters that have come to the attention of the auditor as a result of the performance of the audit. The auditor is not required, in an audit in accordance with Auditing Standards, to design audit procedures for the specific purpose of identifying matters of governance interest.