The main matters that should be included in the communication with those charged with governance are:

1. Auditor’s Responsibility: Outline the auditor’s responsibility in relation to the financial statements, including forming and expressing an opinion on the financial statements and the scope of the audit.
2. Planned Scope and Timing of the Audit: Include details on how the audit will address significant risks of material misstatement from fraud and error, the approach to internal control, application of materiality, reliance on the work of internal audit, and key dates and deadlines.
3. Significant Findings: Report on significant findings from the audit, including the selection or changes in significant accounting policies, the potential effect on the financial statements of significant risks and exposures, and any significant difficulties encountered during the audit (e.g., delays in information, brief time frames).
4. Auditor’s Independence: Confirm that relevant ethical requirements regarding independence have been complied with, including relationships and fees that might bear on independence, and describe any safeguards applied to address identified threats.

(2.5 marks for each main matter – 10 marks total)