Page 37 - CA Final PARAM Digital Book.

finalized for issuance. Explain in detail why it is important to communicate key audit matters to those
charged with governance.
Answer ➢ Preliminary Views Communication
However, the auditor may communicate preliminary views about key audit matters when discussing
the planned scope and timing of the audit and may further discuss such matters when communicating
about audit findings.
• Robust Communication
Doing so may help to alleviate the practical challenges of attempting to have a robust two-way
dialogue about key audit matters at the time the financial statements are being finalized for
issuance.

• Opportunity to TCWG
Communication with those charged with governance enables them to be made aware of the
key audit matters that the auditor intends to communicate in the auditor’s report and provides
them with an opportunity to obtain further clarification where necessary.

➢ Draft of Auditor’s Report
The auditor may consider it useful to provide those charged with governance with a draft of the auditor’s
report to facilitate this discussion.

➢ Conclusion
Communication with those charged with governance recognizes their important role in overseeing the
financial reporting process and provides the opportunity for those charged with governance to
understand the basis for the auditor’s decisions in relation to key audit matters and how these matters
will be described in the auditor’s report. It also enables those charged with governance to consider
whether new or enhanced disclosures may be useful in light of the fact that these matters will be
communicated in the auditor’s report.

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