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Communicating with management and those charged with governance

AUD Chapter 7 · Area I · Blueprint I.F

An audit is not a silent exercise. The auditor must tell the right people the right things at the right time. The Blueprint tests two conversations: the plan for the audit, and weaknesses found in internal control. You are also expected to prepare the written materials.

In this chapter

1. Two audiences: management and those charged with governance
2. Conversation one: planned scope and timing
3. What else governance must hear
4. Form and timing of communications
5. What the PCAOB adds for audit committees
6. Conversation two: three grades of control problem
7. Reporting control problems: who, how and when

This chapter has 7 lessons, 50 practice MCQs with explanations and 10 simulations, plus flashcards and a recall sheet.

What this chapter covers

• Planned scope and timing
• significant findings
• deficiencies, significant deficiencies and material weaknesses
• timing and form of the communication

Chapter 6: Engagement documentation · Chapter 8: Audit and assurance quality