Required communication with those charged with governance

Question 1

Define what is meant by the term “those charged with governance.”

Answer 1

The person(s) or organization(s) with responsibility for overseeing the strategic direction of the entity and the obligations related to the accountability of the entity

Question 2

What matters are the auditor required to communicate to those charged with governance?

Answer 2

1. )”The auditor’s responsibilities under generally accepted auditing standards (GAAS)
2. )The planned scope and timing of the audit
3. )Significant findings from the audit

Question 3

What is the auditor’s basic responsibility regarding communication with those charged with governance?

Answer 3

The auditor must communicate those matters that are “significant” and relevant to the responsibilities of those charged with governance in overseeing the financial reporting process.

Question 4

Define what is meant by the term “management.”

Answer 4

The person(s) with executive responsibility for the conduct of the entity’s operations