Wiley Practitioner's Guide to GAAS 2022

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

• Scope
• Definitions of Terms
• Objectives of AU-C Section 260
• Requirements
  • Those Charged with Governance
  • Matters to Be Communicated
  • Communication Process
  • Qualitative Aspects of Accounting Practices
  • Other AU-C Sections

SCOPE

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. Auditors may communicate matters not required to be communicated by GAAS but by agreement with management or those charged with governance or by law, regulation, or other external requirements. (AU-C 260.03)

DEFINITIONS OF TERMS

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