A5 (3) - Communication with Those Charged of Governance

Question 0

Audit committee

Answer 0

Enhance internal control by creating means of direct communication between the out side directors and independent auditor.

Sarbanes Oxley require audit committee to approve engagement of the auditors and to have ongoing communication with the auditor.

Question 1

Those of charged with governance

Answer 1

1) . Board of directors
2) . Certain government agencies
3) . Audit committee

Question 2

Forms and timing of communications

Answer 2

Significant audit findings should be communicated in writing

Communication timing auditor reports filed with SEC

Question 3

Required communication - Matters related to auditor responsibilities

Answer 3

A. the responsibilities may be communicated through engagement letter

Question 4

Required communication - Overview of the planned scope and timing of the audit

Answer 4

A. How significant risks or material misstatement will be addressed
B. matters related to materiality and use of internal audit
C. Discussion about attitude and actions against internal controls

Question 5

Required communications - Significant audit findings

Answer 5

A . appropriateness of accounting policies
B. process used in formulating significant estimates
C. Significant management judgement
D. Adequacy of financial statement of disclosures .
E. Significant difficulties encountered in performing audit
F. Disagreement with the management whether or not resolved.
G. Un corrected misstatements and it’s impact on the audit opinion
I. Any conditions affect auditor independence
J. Management consultation with other accountants
K. Issues rising from audit that were discussed with management

Question 6

Communication with the managements

Answer 6

Competency and interprets of the management should not discussed with the managements