Auditing and Ethics · Completion and Review

Auditor's Communication and Completion Procedures Before Signing the Audit Report

Updated 5 October 2026 · Fact-checked

Completion procedures are the last audit steps before you sign the report. You review the financial statements, check subsequent events, going concern and misstatements, obtain written representations, communicate with those charged with governance under SA 260, and confirm the evidence supports your opinion. Then you sign.

Understand Auditor's Communication and Completion Procedures

An audit does not end when testing ends. Before you sign, you must be sure that the evidence you hold is enough and appropriate to support your opinion. Completion is the stage where you stand back and check this.

Three things happen at this stage. First, you review the work and the financial statements. You check that all planned procedures are done, that misstatements are evaluated, and that the financial statements are complete and follow the framework. Second, you obtain final evidence. This covers subsequent events (SA 560), going concern (SA 570), and written representations from management (SA 580). Third, you communicate. You tell those charged with governance (TCWG) what you found and how you did the audit (SA 260).

Those charged with governance are the people responsible for overseeing the entity's strategic direction and its accountability. In a company, this is usually the board of directors or the audit committee. Communication with TCWG is not the same as communication with management. Some matters go to both, but you must decide who the right audience is.

Under SA 260 you communicate your responsibilities as auditor, the planned scope and timing of the audit (including the significant risks you have identified), and significant findings. Significant findings include your views on the qualitative aspects of accounting practices, significant difficulties met during the audit, significant matters discussed with management, written representations requested, circumstances that affect the form and content of the auditor's report, and other significant matters that matter for oversight of financial reporting.

Uncorrected misstatements are dealt with by SA 450. It requires you to communicate them to TCWG on a timely basis and to request that they be corrected. This works alongside SA 260. Name both SA 260 and SA 450 for this point in your answer.

Independence has its own rule. For audits of listed entities, SA 260 requires you to communicate a statement that the engagement team and the firm have complied with relevant ethical requirements on independence. You must also communicate all relationships and other matters that may reasonably be thought to bear on independence, together with the related safeguards. For other entities, SA 260 does not specifically require this statement. You still communicate such matters where law, regulation or the Code of Ethics requires it, or where you judge it appropriate.

Communication should be timely. Written communication is needed when oral communication would not be adequate. You must document it.

Written representations are evidence, but not sufficient on their own. They never replace other audit evidence. If management does not provide a representation you requested, this triggers a sequence of steps. You first discuss the matter with management. You then reevaluate management's integrity and the effect this may have on the reliability of representations, oral or written, and of audit evidence in general. You take appropriate action, including determining the effect on your opinion.

Withdrawal or disclaimer applies only in two specified cases: management does not provide the representations on its responsibilities for the financial statements, or you conclude that concerns about management's integrity make the representations unreliable. In those cases you withdraw from the engagement where permitted by law or regulation. If withdrawal is not possible, you disclaim an opinion. For any other refusal, you consider the effect on your opinion; this does not automatically mean a disclaimer.

Key rules to remember

SA 260 purpose: Communicate responsibilities + planned scope and timing (including significant risks identified) + significant findings, to TCWG, in a timely way; Use this three-part frame for any SA 260 question. Do not forget significant risks identified under planned scope and timing.
Significant findings to communicate: Qualitative aspects of accounting practices + significant difficulties + significant matters discussed with management + written representations requested + circumstances affecting the form and content of the report + other significant matters relevant to oversight; This is the SA 260 list of significant findings. Uncorrected misstatements are communicated to TCWG under SA 450, which also requires you to request correction. This works alongside SA 260. Significant risks identified belong to the planned scope and timing part of the SA 260 frame.
Independence communication: Listed entities: SA 260 requires you to communicate a statement of compliance with relevant ethical requirements on independence, plus all relationships and other matters that may reasonably be thought to bear on independence, and the related safeguards. Other entities: SA 260 does not specifically require this; communicate where law, regulation or the Code of Ethics requires it, or where you judge it appropriate; For listed entities both parts are required by SA 260. For other entities, do not say there is no requirement at all. Law, regulation and the Code of Ethics may still require the communication.
Written representations rule: Written representation ≠ sufficient appropriate audit evidence on its own; Management must be asked for them. Date of representations should be as near as practicable to, but not after, the date of the auditor's report.
Completion checklist (illustrative sequence, not prescribed by any SA): Review work → evaluate misstatements → subsequent events → going concern → written representations → overall analytical review → communicate with TCWG → sign; This is an illustrative sequence only. No standard fixes this order, and it can vary in practice. All steps must be done before signing.

How to solve Auditor's Communication and Completion Procedures questions

Use this method for a descriptive question on completion, SA 260 or the final review.

1Read the question and identify the stage: review, final evidence, or communication. Underline the facts given.
2Name the standard involved: SA 260, SA 580, SA 560, SA 570, SA 520 or SA 450.
3State the rule in one or two plain sentences.
4Apply the rule to the facts. Say what the auditor should do and with whom: management or TCWG.
5Cover documentation and timing. State that communication is timely and documented.
6Conclude with the effect on the audit report, if any: unmodified, modified, or disclaimer.
7If asked for a list, give a numbered list with one short reason for each item.

Quickest way: Completion in 60 seconds

When to use it: Use when the question is short, or you are short of time. For MCQs, eliminate options that give absolute statements.

For MCQs, eliminate options that say representations alone are enough, or that communication with TCWG is optional.
Match the matter to the standard: written representations to SA 580, post-balance-sheet events to SA 560, overall review to SA 520, communication to SA 260.
Check the audience. Governance oversight matters go to TCWG, day-to-day matters go to management.
For written answers, use the format: Provision, Facts, Conclusion. Write the standard first, then apply it, then conclude in one line.
Give a short list of 3 to 5 points. Each point gets one line and one reason, which earns step marks.

Common mistakes in Auditor's Communication and Completion Procedures

Treating written representations as full audit evidence.
Students see that a signed letter comes from management and think it settles the point.
Fix: Write that representations support other evidence but cannot replace it. If other evidence is missing, the letter does not fill the gap.
Confusing management with those charged with governance.
Both groups are inside the entity and the terms sound similar.
Fix: TCWG oversee the entity and its financial reporting. Management run it. Name the correct audience in each answer.
Listing only the final representation letter as completion.
It is the most visible completion document.
Fix: Add the review of financial statements, misstatement evaluation, subsequent events, going concern, overall analytical review and communication with TCWG.
Forgetting to document communication with TCWG.
Students focus on what to say and not on the record.
Fix: State that oral communication is documented in the working papers, and written communication is kept as a copy.
Dating the audit report before obtaining representations and finishing the review.
Students think the report date is just the day the opinion is formed.
Fix: Cite SA 700. The report is dated no earlier than the date on which you have obtained sufficient appropriate audit evidence on which to base the opinion, including that those with recognised authority have asserted that they have taken responsibility for the financial statements.
Saying the auditor must communicate every matter noted during the audit.
Students overread the word 'all' in the SA.
Fix: Say the auditor communicates matters that are significant to oversight of financial reporting, not every trivial point.

Worked examples

Example 1

During the final stage of the audit of Alpha Ltd, management refuses to give the written representations requested by the auditor. Advise the auditor.

Show the solution

Provision: Under SA 580, the auditor requests written representations from management. They support other evidence but do not replace it.
Facts: Management has refused to provide them, even though the auditor asked.
Step 1: The refusal triggers a sequence of steps. The auditor should first discuss the matter with management.
Step 2: The auditor should reevaluate the integrity of management and evaluate the effect this may have on the reliability of representations, oral or written, and of audit evidence in general.
Step 3: The auditor should take appropriate action, including determining the possible effect on the opinion.
Step 4: Withdrawal or disclaimer applies only in two cases: management does not provide the representations on its responsibilities for the financial statements, or the auditor concludes that concerns about management's integrity make the representations unreliable. In those cases the auditor should withdraw from the engagement where permitted by law or regulation. If withdrawal is not possible, the auditor disclaims an opinion. If the refusal relates to other representations, the auditor considers the effect on the opinion.
Step 5: Document the discussions and actions.

Answer: The refusal triggers a discussion with management, a reevaluation of management's integrity and its effect on the reliability of representations and audit evidence in general, and appropriate action, including determining the effect on the opinion. Withdrawal or disclaimer applies only if management does not provide the representations on its responsibilities for the financial statements, or integrity concerns make the representations unreliable. In those cases the auditor should withdraw from the engagement where permitted by law or regulation. If withdrawal is not possible, the auditor disclaims an opinion. Refusal of other representations requires the auditor to consider the effect on the opinion.

Example 2

List the matters an auditor should communicate to those charged with governance at the completion stage under SA 260, and state why communication is important.

Show the solution

Provision: SA 260 requires the auditor to communicate with TCWG on matters relevant to oversight of financial reporting.
Step 1: The auditor's responsibilities in relation to the financial statement audit.
Step 2: The planned scope and timing of the audit, including significant risks identified.
Step 3: Significant findings: the auditor's views on qualitative aspects of accounting practices, including policies, estimates and disclosures.
Step 4: Significant difficulties met during the audit, such as delays or unavailability of information.
Step 5: Significant matters discussed or corresponded with management, and written representations requested.
Step 6: Circumstances that affect the form and content of the auditor's report, where relevant, and other significant matters for oversight. Uncorrected misstatements are also communicated: SA 450 requires the auditor to communicate them to TCWG on a timely basis and request their correction, and this works alongside SA 260.
Step 7: Independence: for audits of listed entities, SA 260 requires the auditor to communicate a statement that the engagement team and the firm have complied with relevant ethical requirements on independence, and all relationships and other matters that may reasonably be thought to bear on independence, with the related safeguards. For other entities, SA 260 does not specifically require this; the auditor communicates these matters where law, regulation or the Code of Ethics requires, or where judged appropriate.
Step 8: Importance: it supports two-way dialogue, helps TCWG discharge oversight duties, and reduces the risk of misunderstandings.
Step 9: The auditor documents the communication.

Answer: The auditor communicates responsibilities, planned scope and timing (including significant risks identified), significant findings (qualitative aspects of accounting practices, significant difficulties, matters discussed with management, representations requested, circumstances affecting the form and content of the report, and other significant matters), and independence matters. Uncorrected misstatements are communicated to TCWG under SA 450, which also requires the auditor to request correction. For listed entities SA 260 requires a statement of compliance with independence requirements and all relationships and other matters bearing on independence, with safeguards. For other entities SA 260 does not specifically require this, but the auditor communicates where law, regulation or the Code of Ethics requires it, or where judged appropriate. This supports TCWG's oversight, and the auditor documents it.

Exam tips

Practice a 6 to 8 point list for SA 260 communication. It is a repeat theme in written answers.
In scenario questions, write the standard name first. It signals the right rule and earns the opening mark.
For MCQs, any option saying representations alone are enough, or that communication with TCWG is optional, is almost always wrong.
Always add the effect on the report in a conclusion line: modify, disclaim, or no change.
Link completion steps to the related SAs: 450, 520, 560, 570 and 580. Questions often combine two of them.

Practice questions from Completion and Review

Auditor's Communication and Completion Procedures in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

ACCA Applied SkillsAudit Completion: Reviews, Documentation and Communication

Auditor's Communication and Completion Procedures: frequently asked questions

Who are those charged with governance?

They are the persons or organisations with responsibility for overseeing the entity's strategic direction and its accountability. In a company, this is generally the board of directors or the audit committee. Their exact make-up differs by entity.

Is communication under SA 260 only written?

No. It can be oral or written. Written communication is appropriate when oral communication would not be adequate. Either way, you document it in the working papers.

What happens if management will not give written representations?

The refusal triggers a discussion with management. You then reevaluate management's integrity and the effect this may have on the reliability of representations, oral or written, and of audit evidence in general. You take appropriate action, including determining the effect on your opinion. Withdrawal or disclaimer applies only if management does not provide the representations on its responsibilities for the financial statements, or integrity concerns make the representations unreliable. In those cases you withdraw where permitted by law or regulation, and if that is not possible you disclaim an opinion. For other refusals, you consider the effect on your opinion.

What should be in a final review checklist before signing?

Check that all planned procedures are complete and documented, misstatements are evaluated, subsequent events and going concern are considered, representations are obtained, and the financial statements are complete and follow the framework. Then confirm communication with TCWG is done.