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Chapter 11 4
Reports to those charged with
governance
ISA 260 (Revised) Communication with Those Charged with Governance and,
requires the external auditor to engage in communications with management
provides the following guidance.
6.1 Definitions
Those charged with governance are defined as:
‘The persons with responsibility for overseeing the strategic direction of
the entity and obligations related to the accountability of the entity.’
This includes the directors (executive and non-executive) and the audit
committee.
In contrast, management are defined as:
‘The persons with executive responsibility for the conduct of the entity's
operations.’
6.2 Objectives of communicating with TCWG
To communicate the responsibilities of the auditor and an overview of the scope
and timing of the audit.
To obtain information relevant to the audit.
To report matters from the audit on a timely basis.
To promote effective two-way communication.
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