Page 36 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
2. Assists TCWG & Auditor: Assist those charged with governance in understanding auditor's work, risk,
materiality, and identifying areas for additional procedures. Assist the auditor in understanding the entity and
its environment. Communication with those charged with governance helps in understanding matters requiring
special audit consideration.

(CNO-SA260.120) Significant findings from the audit (Shortcut DAAQO is significant finding) (During
the Audit)
Significant Difficulties: Significant difficulties faced during the audit should be communicated to TCWG.
Significant Audit matters & written representations requests: If all those charged with governance aren't
involved in managing the entity, the auditor should share significant audit matters discussed with management
and any written representations they're requesting.
Matters affecting Audit Report: Discuss circumstances affecting the form and content of the auditor's report,
if any.
Significant qualitative aspects: The auditor should communicate their views on significant qualitative aspects
of the entity's accounting practices, including accounting policies, estimates, and disclosures. This includes any
significant practice, acceptable under the reporting framework, deemed inappropriate for the entity's
circumstances.
Other Matters: Communicate other significant matters arising during the audit that, in the auditor’s
professional judgment, are relevant to overseeing the financial reporting process.

(CNO-SA260.140) Significant difficulties encountered during the audit may include such matters as: -
(Shortcut: DUUMB)
1.Unwillingness or delays: Management-induced delays or unwillingness to provide essential information,
hindering the auditor's ability to conduct their procedures effectively.
2. Unexpected Effort: Encountering unexpected effort in obtaining sufficient and appropriate audit evidence.
3. Unavailability of information: The unavailability of expected information for the audit.
4. Management's unwillingness to Assess Going Concern: Management's unwillingness to assess or extend
their evaluation of the entity's ability to continue as a going concern.
5. Brief Time: Facing an unreasonably brief period for audit completion.

(CNO-SA260.160) Significant matters that were discussed, or subject to correspondence with management
may include such matters as: - (Shortcut READ Consultations on significant matter)
Risks of material misstatement: Business conditions, plans, and strategies impacting risks of material
misstatement.
Significant Events & Transactions: Significant events or transactions occurring during the year that might
affect the business.
Discussion During Appointment: Discussions regarding accounting practices, auditing standards, and fees for
services during appointment of auditor.
Disagreements: Significant matters on which there was disagreement with management that are not resolved
through additional facts or information
Management’s Consultations: Management's consultation with other accountants on accounting or auditing
matters.

(CNO-SA260.180) Communication with TCWG with respect to impact on Audit Report
SA 570: Communication is needed when there's a material uncertainty related to going concern in accordance
with SA 570.
SA 701: Reporting key audit matters in accordance with SA 701 necessitates communication with those charged
with governance.

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