7AU-C 260 The Auditor’s Communication with Those Charged with Governance


Definitions of Terms

Objectives of AU-C Section 260


Those Charged with Governance

Matters to Be Communicated

Communication Process

Qualitative Aspects of Accounting Practices

Other AU-C Sections


AU-C 260 provides guidance on the auditor’s responsibility to communicate with those charged with governance matters related to the financial statement audit that are, in the auditor’s professional judgment, significant and relevant to the responsibilities of those charged with governance in overseeing the financial reporting process. Note that AU-C 260 does not apply to managers unless they also have a role in governance. (AU-C 260.01) This section may also be adopted and applied to audits of other historical financial information when those charged with governance oversee the preparation and fair presentation of that information. (AU-C 260.02) Certain matters should be communicated in each audit (as described below); however, the auditor is not required to perform procedures specifically to identify these matters.


Source: AU-C 260.06. For definitions related to this standard, see Appendix A, “Definitions of Terms”: Management, Those charged with governance.


The objectives of the auditor are to:

  1. communicate clearly with those charged with governance the responsibilities of the auditor regarding the financial statement audit and an ...

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