Communication with Those Charged with GoCommunication with Those Charged with Governance

Communication with Those Charged with Governance

74 ASA 260 Communication of Audit Matters with Those Charged With Governance requires auditors to communicate audit matters of governance interest with those charged with governance. Because of the uncertainties often involved with some fair value measurements, the potential effect on the financial report of any significant risks may be of governance interest. For example, the auditor considers communicating the nature of significant assumptions used in fair value measurements, the degree of subjectivity involved in the development of the assumptions, and the relative materiality of the items being measured at fair value to the financial report as a whole. The auditor ordinarily considers the guidance contained in ASA 260 when determining the nature and form of communication.