Communication with Those Charged with GoCommunication with Those Charged with Governance

Communication with Those Charged with Governance

1. Unless all those charged with governance are involved in managing the entity,[12] the auditor shall communicate on a timely basis with those charged with governance events or conditions identified that may cast significant doubt on the entity’s ability to continue as a going concern. (Ref: Para. A98–A99)
2. If events or conditions are identified that may cast significant doubt on the entity’s ability to continue as a going concern, the auditor shall communicate with those charged with governance: (Ref: Para. A100)
   1. Whether the events or conditions constitute a material uncertainty;
   2. Whether management’s use of the going concern basis of accounting is appropriate in the preparation of the financial report;
   3. An overview of the audit procedures performed and the basis for the auditor’s conclusions, including the auditor’s evaluation of management’s plans for future actions;
   4. The adequacy of related disclosures in the financial report, including disclosures that describe the significant judgements made by management and the mitigating factors in management’s plans that are of significance to overcoming the adverse effects of the events or conditions;
   5. When applicable, management’s unwillingness to make or extend its assessment of the entity’s ability to continue as a going concern when requested; and
   6. The implications for the audit or the auditor’s report. (Ref: Para. A101)