Chapter 13

Question 1

What does those charged with governance mean

Answer 1

Term used to describe role of persons entrusted with supervision, control and direction of entity.
Normally accountable for ensuring entity achieves its objectives, financial reporting and reporting to interested parties

Question 2

What should engagement letter include to avoid misunderstandings?

Answer 2

Explain auditors only communicate matters that come to their attention as a result of performance of the audit. It should state auditors aren’t required to design procedures for the purpose of expressing an opinion on effectiveness of entity internal control
Also can;
- describe form which any communications on governance matters will take
- identify appropriate persons with whom such communications will be made
- identify any specific matters of governance interest which its agreed are to be communicated