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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Reports to those charged with governance and management

Harlow & Co is the auditor of Brightwater plc, a listed entity. During planning for the year-end audit, the engagement partner wants to meet the audit committee. Under ISA 260 (Revised), which of the following matters must the auditor communicate to those charged with governance (TCWG) at this stage?

The auditor must communicate the planned scope and timing of the audit, including significant risks identified. ISA 260 does not require detailed audit programmes or sample sizes, and conclusions on misstatements come later once the work has been completed.

  1. AThe planned scope and timing of the audit, including significant risks identifiedCorrect
  2. BThe detailed audit programme and specific sample sizes to be tested
  3. CThe names of junior staff and their hourly charge-out rates
  4. DThe auditor's final conclusions on all uncorrected misstatements

Explanation

ISA 260 requires the auditor to communicate the planned scope and timing of the audit, including significant risks identified. Detailed programmes and sample sizes could compromise the unpredictability of procedures and are not required. Uncorrected misstatements are communicated later, after the work is performed.

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