The auditor communicates with them on the scope and timing of the audit, significant findings, independence and control deficiencies. In smaller entities management and those charged with governance may be the same people.
Source: BDS 260
Related terms
Audit committeeA committee of the board of directors responsible for overseeing financial reporting, internal control, internal audit and the independent audit.Key audit mattersMatters that, in the auditor's professional judgement, were of most significance in the audit of the current-period financial statements and are described separately in the report.Control deficiencyA situation where a control is designed, implemented or operated in a way that does not prevent, or detect and correct, misstatements on a timely basis, or where a necessary control is missing.Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.
Last updated: November 8, 2026 · This definition is for general information only.