Communication with Those Charged With GoCommunication with Those Charged With Governance

Communication with Those Charged With Governance

31 The auditor shall discuss with those charged with governance the nature, extent and business rationale of significant related party relationships and transactions, including those involving actual conflicts of interest.

32 Ordinarily, the discussion enables the auditor to:

(a) confirm that those charged with governance are fully aware of the nature and extent of significant related party relationships and transactions and their effects on the financial report;

(b) establish a common understanding with those charged with governance of the business rationale and propriety of the related party relationships and transactions, especially those involving actual or perceived conflicts of interest, and corroborate responses from management to enquiries the auditor has made into related party matters;

(c) alert those charged with governance to specific related party relationships and transactions of which they may not have been aware, to enable them to take appropriate action where necessary;

(d) review with those charged with governance the completeness, accuracy and transparency of management’s related party disclosures, and the appropriateness of the accounting for related party relationships and transactions; and

(e) resolve identified related party issues, such as disagreements regarding the nature and extent of disclosure, on a timely basis.