Q2 25 pts
ISA 260 Communication with Those Charged with Governance provides guidance to auditors in relation to communicating with those charged with governance on matters arising from the audit of an entity’s financial statements. (i) Explain why it is important that auditors communicate throughout the audit with those charged with governance; (10 pts)
(ii) Describe five examples of matters that the auditors may communicate to those charged with governance. (15 pts)
You are an audit senior of May & Co and are planning the audit of Tuck Co for the year ending 31 March 20X8. The company is a manufacturer of portable music players and your audit manager has already had a planning meeting with the finance director. Forecast revenue is £68·6m and profit before tax is £4·2m.
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