Document ID: chunk:federal_register_of_legislation:F2023C01128:reg:17:p19
Version: federal_register_of_legislation:F2023C01128
Segment Type: reg
Provision Reference: reg 17 (pt 19/25)
Character Range: 59619–62689

may be affected by such factors as:

           * Whether a discussion of the matter will be included in the auditor's report.  For example, when key audit matters are communicated in the auditor's report, the auditor may consider it necessary to communicate in writing about the matters determined to be key audit matters.

           * Whether the matter has been satisfactorily resolved.

           * Whether management has previously communicated the matter.

           * The size, operating structure, control environment, and legal structure of the entity.

           * In the case of an audit of special purpose financial reports, whether the auditor also audits the entity's general purpose financial reports.

           * Legal requirements.  In some jurisdictions, a written communication with those charged with governance is required in a prescribed form by law.

           * The expectations of those charged with governance, including arrangements made for periodic meetings or communications with the auditor.

           * The amount of ongoing contact and dialogue the auditor has with those charged with governance.

           * Whether there have been significant changes in the membership of a governing body.

A48.         When a significant matter is discussed with an individual member of those charged with governance, for example, the chair of an audit committee, it may be appropriate for the auditor to summarise the matter in later communications so that all of those charged with governance have full and balanced information.

Timing of Communications (Ref: Para. 21)

A49.         Timely communication throughout the audit contributes to the achievement of robust two‑way dialogue between those charged with governance and the auditor.  However, the appropriate timing for communications will vary with the circumstances of the engagement.  Relevant circumstances include the significance and nature of the matter, and the action expected to be taken by those charged with governance.  For example:

           * Communications regarding planning matters may often be made early in the audit engagement and, for an initial engagement, may be made as part of agreeing the terms of the engagement.

           * It may be appropriate to communicate a significant difficulty encountered during the audit as soon as practicable if those charged with governance are able to assist the auditor to overcome the difficulty, or if it is likely to lead to a modified opinion.  Similarly, the auditor may communicate orally to those charged with governance as soon as practicable significant deficiencies in internal control that the auditor has identified, prior to communicating these in writing as required by ASA 265.[26]

           * When ASA 701 applies, the auditor may communicate preliminary views about key audit matters when discussing the planned scope and timing of the audit (see paragraph A13), and the auditor also may have more frequent communications to further discuss such matters when communicating about significant audit