Communications with Management and ThoseCommunications with Management and Those Charged with Governance

Communications with Management and Those Charged with Governance

Communication with Management

1. If the auditor identifies fraud or suspected fraud, the auditor shall communicate these matters, unless prohibited by law or regulation, on a timely basis with the appropriate level of management in order to inform those with primary responsibility for the prevention and detection of fraud of matters relevant to their responsibilities. (Ref: Para. A195–A196)

Communication with Those Charged with Governance

1. Unless all of those charged with governance are involved in managing the entity, if the auditor identifies fraud or suspected fraud, involving:
   1. Management;
   2. Employees who have significant roles in internal control; or
   3. Others, except for matters that are clearly inconsequential,

the auditor shall communicate these matters with those charged with governance on a timely basis. If the auditor identifies suspected fraud involving management, the auditor shall communicate the suspected fraud with those charged with governance and discuss with them the nature, timing, and extent of audit procedures necessary to complete the audit. Such communications with those charged with governance are required unless the communication is prohibited by law or regulation. (Ref: Para. A195 and A197–A199)

1. The auditor shall communicate, unless prohibited by law or regulation, with those charged with governance any other matters related to fraud that are, in the auditor’s judgement, relevant to the responsibilities of those charged with governance. (Ref: Para. A195 and A200)