Document ID: chunk:federal_register_of_legislation:F2023C01128:reg:17:p5
Version: federal_register_of_legislation:F2023C01128
Segment Type: reg
Provision Reference: reg 17 (pt 5/25)
Character Range: 19315–22599

of Those Charged with Governance Are Involved in Managing the Entity

13.               In some cases, all of those charged with governance are involved in managing the entity, for example, a small business where a single owner manages the entity and no one else has a governance role.  In these cases, if matters required by this Auditing Standard are communicated with person(s) with management responsibilities, and those person(s) also have governance responsibilities, the matters need not be communicated again with those same person(s) in their governance role.  These matters are noted in paragraph 16(c) of this Auditing Standard.  The auditor shall nonetheless be satisfied that communication with person(s) with management responsibilities adequately informs all of those with whom the auditor would otherwise communicate in their governance capacity.  (Ref: Para. A8)

Matters to be Communicated

The Auditor's Responsibilities in Relation to the Financial Report Audit

14.               The auditor shall communicate with those charged with governance the responsibilities of the auditor in relation to the financial report audit, including that:

(a)                The auditor is responsible for forming and expressing an opinion on the financial report that has been prepared by management with the oversight of those charged with governance; and

(b)                The audit of the financial report does not relieve management or those charged with governance of their responsibilities.  (Ref: Para. A9–A10)

Planned Scope and Timing of the Audit

15.               The auditor shall communicate with those charged with governance an overview of the planned scope and timing of the audit, which includes communicating about the significant risks identified by the auditor.  (Ref: Para. A11–A16)

Significant Findings from the Audit

16.               The auditor shall communicate with those charged with governance: (Ref: Para. A17–A18)

(a)                The auditor's views about significant qualitative aspects of the entity's accounting practices, including accounting policies, accounting estimates and financial reporting disclosures.  When applicable, the auditor shall explain to those charged with governance why the auditor considers a significant accounting practice, that is acceptable under the applicable financial reporting framework, not to be most appropriate to the particular circumstances of the entity; (Ref: Para. A19–A20)

(b)                Significant difficulties, if any, encountered during the audit; (Ref: Para. A21)

(c)                Unless all of those charged with governance are involved in managing the entity:

(i)                 Significant matters arising during the audit that were discussed, or subject to correspondence, with management; and (Ref: Para. A22)

(ii)               Written representations the auditor is requesting;

(d)                Circumstances that affect the form and content of the auditor's report, if any; and (Ref: Para. A23–A25)

(e)                Any other significant matters arising during the audit that, in the auditor's professional judgement, are relevant to the oversight of the financial reporting process.  (Ref: Para. A26–A28)

Auditor Independence

17.               In the case of