- 10 Marks
AA – May 2019 – L2 – Q5b – Professional and Ethical Considerations
Explains the auditor's objectives and significant matters for communication with those charged with governance under ISA 260.
Question
b) Due to increased workload, your firm has just recruited a new junior audit staff member, George Ansong, who has joined the practice directly from University and so has no previous work experience. You have been assigned as his training manager.
George is now looking at summarised material given to him by the audit partner on ISA 260. ISA 260: Communication with those charged with governance deals with the auditor’s responsibility to communicate with those charged with governance in an audit of financial statements. It focuses primarily on communications from the auditor to those charged with governance.
George would like you to explain in more detail what he has read.
Required:
In relation to George’s request, detail the provisions set out in ISA 260 in relation to the following:
i) The main objectives of the auditor in communicating with those charged with governance.
(4 marks)
ii) SIX (6) significant matters the auditor should communicate with those charged with governance about the responsibilities of the auditor in relation to the audit of the financial statements.
(6 marks)
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