i) Objectives of Communicating with Those Charged with Governance:

• To communicate the auditor’s responsibilities in relation to the audit of the financial statements.
• To obtain relevant information from those charged with governance for the audit, particularly regarding significant matters that may affect the financial statements.
• To promote effective two-way communication between the auditor and those charged with governance, enabling the auditor to gain insights that enhance audit quality.

(3 marks)

ii) Matters to Be Communicated with Those Charged with Governance:

• The auditor’s responsibilities in relation to the financial statement audit, including forming an opinion on the financial statements.
• The planned scope and timing of the audit, including significant risks identified by the auditor.
• The auditor’s views on significant qualitative aspects of the entity’s accounting practices, including accounting policies and estimates.
• Any significant difficulties encountered during the audit, such as delays or uncooperative management.
• Significant matters discussed with management, including disagreements, if any.
• Written representations requested by the auditor from management.
• Any other significant matters that may affect the auditor’s opinion, such as material uncertainties or legal matters.
• Independence of the auditor and any safeguards applied to maintain independence.