Section The Communication Process - ASA 260 - Communication With Those Charged With Governance - December 2015 - The Communication Process

The Communication ProcessThe Communication Process

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Establishing the Communication Process

The auditor shall communicate with those charged with those charged with governance the form, timing and expected general content of communications. (Ref: Para. A37–A45)

Forms of Communication

The auditor shall communicate in writing with those charged with governance regarding significant findings from the audit if, in the auditor’s professional judgement, oral communication would not be adequate. Written communications need not include all matters that arose during the course of the audit. (Ref: Para. A46–A48)
The auditor shall communicate in writing with those charged with governance regarding auditor independence when required by paragraph 17 of this Auditing Standard.

Timing of Communications

The auditor shall communicate with those charged with governance on a timely basis. (Ref: Para. A49–A50)

Adequacy of the Communication Process

The auditor shall evaluate whether the two‑way communication between the auditor and those charged with governance has been adequate for the purpose of the audit. If it has not, the auditor shall evaluate the effect, if any, on the auditor’s assessment of the risks of material misstatement and ability to obtain sufficient appropriate audit evidence, and shall take appropriate action. (Ref: Para. A51–A53)