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ISSN 1833-4393

CONTENTS

COMPILATION DETAILS

AUTHORITY STATEMENT

CONFORMITY WITH INTERNATIONAL STANDARDS ON AUDITING

Paragraphs

Application......................................................Aus 0.1-Aus 0.2

Operative Date.........................................................Aus 0.3

Introduction

Scope of this Auditing Standard.................................................1-3

The Role of Communication...................................................4-7

Effective Date...............................................................8

Objectives..................................................................9

Definitions................................................................10

Requirements

Those Charged with Governance..............................................11-13

Matters to be Communicated.............................................14-Aus 17.1

The Communication Process.................................................18-22

Documentation..............................................................23

Application and Other Explanatory Material

Those Charged with Governance..............................................A1-A8

Matters to Be Communicated...............................................A9-A36

The Communication Process...............................................A37-A53

Documentation............................................................A54

Appendix 1: Specific Requirements in ASQM 1 and Other Australian Auditing Standards that Refer to Communications with Those Charged with Governance

Appendix 2: Qualitative Aspects of Accounting Practices

COMPILATION DETAILS

Auditing Standard ASA 260 Communication With Those Charged With Governance (as Amended)

This compilation takes into account amendments made up to and including 28 January 2025 and was prepared on 12 February 2025 by the Auditing and Assurance Standards Board (AUASB).

This compilation is not a separate Auditing Standard made by the AUASB. Instead, it is a representation of ASA 260 (December 2015) as amended by other Auditing Standards which are listed in the Table below.

Table of Standards

Legislation History

Table of Amendments

AUTHORITY STATEMENT

Auditing Standard ASA 260 Communication With Those Charged With Governance (as amended to 28 January 2025) is set out in paragraphs Aus 0.1 to A54 and Appendix 1 and Appendix 2.

This Auditing Standard is to be read in conjunction with ASA 101 Preamble to AUASB Standards, which sets out how AUASB Standards are to be understood, interpreted and applied. This Auditing Standard is to be read also in conjunction with ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards.

Conformity with International Standards on Auditing

This Auditing Standard conforms with International Standard on Auditing ISA 260 Communication With Those Charged With Governance issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).

Paragraphs that have been added to this Auditing Standard (and do not appear in the text of the equivalent ISA) are identified with the prefix “Aus”.

The following requirement is additional to ISA 260:

• Paragraph Aus 17.1 requires the auditor of entities audited in accordance with the Corporations Act 2001 to provide a statement to those charged with governance that the engagement team and others in the firm as appropriate, the firm, and, when applicable network firms, have complied with the independence requirements of section 307C of the Corporations Act 2001.

The following application and other explanatory material is additional to ISA 260:

• Paragraph Aus A14.1 reminds the auditor in situations where the entity has an internal audit function to consider how the auditor and internal auditors can work together.
• Paragraph Aus A31.1 refers to the relevant ethical requirements.
• Paragraph Aus A44.1 refers to the auditor’s reporting obligations to ASIC in certain circumstances.

This Auditing Standard incorporates terminology and definitions used in Australia.

The equivalent requirements and related application and other explanatory material included in ISA 260 in respect of “relevant ethical requirements”, have been included in Auditing Standard, ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements. There is no international equivalent to ASA 102.

Compliance with this Auditing Standard enables compliance with ISA 260.