TWSA260 Communication with those Charged with Governance

Status

Revised by Auditing Standards Committee in Taiwan on 4 October, 2022

Summary

This Statement deals with the auditor’s responsibility to communicate with those charged with governance in an audit of financial statements.
The objectives of the auditor are:

(a) To communicate clearly with those charged with governance the responsibilities of the auditor in relation to the financial statement audit, and an overview of the planned scope and timing of the audit;

(b) To obtain from those charged with governance information relevant to the audit;

(c) To provide those charged with governance with timely observations arising from the audit that are significant and relevant to their responsibility to oversee the financial reporting process; and

(d) To promote effective two-way communication between the auditor and those charged with governance.

The auditor shall determine the appropriate person(s) within the entity’s governance structure with whom to communicate.

The auditor shall communicate with those charged with governance the responsibilities of the auditor in relation to the financial statement audit, an overview of the planned scope and timing of the audit, and significant findings from the audit. In the case of listed entities, the auditor shall communicate with those charged with governance matters regarding auditor independence.

The auditor shall also communicate with those charged with governance the form, timing and expected general content of communications. The auditor shall communicate in writing with those charged with governance regarding significant findings from the audit if, in the auditor’s professional judgment, oral communication would not be adequate. The auditor shall communicate in writing with those charged with governance regarding auditor independence.

The auditor shall communicate with those charged with governance on a timely basis. In addition, the auditor shall evaluate whether the communication between the auditor and those charged with governance has been adequate for the purpose of the audit. If it has not, the auditor shall evaluate the effect, if any, on the auditor’s assessment of the risks of material misstatement and ability to obtain sufficient appropriate audit evidence, and shall take appropriate action.

Where matters required by this Standard to be communicated are communicated orally, the auditor shall include them in the audit documentation, and when and to whom they were communicated. Where matters have been communicated in writing, the auditor shall retain a copy of the communication as part of the audit documentation.

Effective date

This Standard is effective from 15 December, 2022.