Audit cas 206 auditing

Topics: Auditing, Communication, Financial audit Pages: 2 (742 words) Published: October 31, 2014


Those charged with governance = a person or group who has the responsibility for overseeing the strategic direction of the entity and obligations related to the accountability of the entity, including overseeing the financial reporting process

The objectives of the auditor are:
 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

 To obtain from those charged with governance information relevant to the audit  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  To promote effective two-way communication between the auditor and those charged with governance.

 The auditor needs to determine the appropriate person(s) to communicate (i.e. The board of directors, supervisory board, trustees, committees of management)  If the auditor communicates with a subgroup of those charged with governance, i.e. An audit committee, the auditor should determine whether the auditor also needs to communicate with the governing body

o Consider how effectively the subgroup communicates relevant information with the governing body
 If all those in charge of governance are also involved in managing the company, communicate the matters required by this CAS to management
Matters to be communicated with those charged with governance 

Responsibilities of the auditor in relation to the F/S audit, including that: o Auditor is responsible for forming and expressing an opinion on the F/S prepared by mgm’t with oversight from those in charge of governance; and o Audit of the F/S does not relieve management or those charged with governance of their responsibilities

 An...
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