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

Kestrel & Co is the auditor of Alder plc, a listed company. When planning the audit, the engagement partner is deciding what to communicate to those charged with governance (TCWG). Which of the following matters is required by ISA 260 (Revised) to be communicated at the planning stage?

The auditor must communicate the planned scope and timing of the audit, including significant risks identified. This gives governance an overview without disclosing detailed procedures or sample sizes, which could make the audit predictable. Uncorrected misstatements are communicated later, after the work is performed.

  1. AThe detailed audit procedures and sample sizes to be used for each balance
  2. BThe planned scope and timing of the audit, including significant risks identified by the auditorCorrect
  3. CThe names of individual audit staff and their hourly charge-out rates
  4. DThe final list of uncorrected misstatements identified during the audit

Explanation

ISA 260 requires communication of the auditor's responsibilities, and an overview of the planned scope and timing of the audit, including significant risks. Detailed procedures and sample sizes are not required and could make the audit predictable. Uncorrected misstatements are communicated at the end, not during planning.

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