Group 10: Communication with Management & TCWG

Correct answer A: Appropriate persons in the actual governance structure, considering their roles.

SA 260 paragraph 11/A1-A4 require role-sensitive determination; company titles do not define every entity governance structure.

Correct answer A: Determine whether communication with the governing body is also needed.

SA 260 paragraph 12/A48 require consideration of governing-body coverage and full balanced information, not automatic sufficiency of one recipient.

Correct answer B: That management-role communication adequately informs all relevant governance persons.

SA 260 paragraph 13 has an adequate-coverage condition even where all roles overlap.

Correct answer D: The audit does not relieve management or governance of their responsibilities.

SA 260 paragraph 14 distinguishes auditor opinion responsibility from entity preparation and oversight duties.

Correct answer B: It may affect auditor communication form/timing, but does not relieve the auditor duty.

SA 260 paragraph 5 preserves both responsibilities while recognising form/timing effects.

Correct answer C: Communication about significant risks identified by the auditor.

SA 260 paragraph 15/A12 support useful significant-risk discussion without a guarantee or transfer of planning responsibility.

Correct answer B: The auditor retains sole responsibility for establishing strategy and plan.

SA 260 A15 retains auditor responsibility while permitting useful dialogue.

Correct answer D: Excess procedural predictability may compromise audit effectiveness.

SA 260 A16 calls for care, particularly where governance members manage; it does not remove the overview requirement.

Correct answer C: Explain the qualitative view and why that acceptable practice is less appropriate here.

SA 260 paragraph 16(a) expressly includes this circumstance. Communication should explain a supported view rather than invent a prohibition.

Correct answer D: Significant difficulties encountered and their actual implications.

SA 260 paragraph 16(b)/A21 cover difficulties; report implications require separate evaluated facts.

Correct answer B: SA26016(c)(ii) communication of requested written representations.

The all-governance-managing exception is not supplied; communicate what is requested without implying it is already obtained.

Correct answer B: Communicate the significant findings in writing.

SA 260 paragraph 19 makes significant-findings writing conditional on oral inadequacy. This differs from specific unconditional written requirements.

Correct answer B: Include relevant relationships and other matters reasonably thought to bear on independence.

SA 260 paragraph 17 covers firm/network/entity matters within its scope; relevance evaluation is not an automatic breach conclusion.

Correct answer B: The required independence communication in writing.

SA 260 paragraph 20 requires paragraph17 independence communication in writing; form alone does not determine an opinion.

Correct answer D: Communicate as soon as practicable to enable useful intervention.

SA 260 paragraph 21/A49(b) apply timely circumstance-sensitive communication, not a universal fixed deadline.

Correct answer A: Receipt alone does not establish adequate two-way communication.

SA 260 paragraph 22/A51 evaluate understanding, openness and actions, not transport status alone.

Correct answer A: Document matters communicated, when and to whom.

SA 260 paragraph 23 requires these substantive facts; an occurrence label is insufficient.

Correct answer C: Identification was incidental to the audit and no procedures searched for other such matters.

SA 260 A34-A36 distinguish supplementary information from separate comprehensive assurance.

Correct answer A: Consider intended-use/non-reliance and distribution limits; it was not prepared with that party in mind.

SA 260 A43-A45 address purpose, restrictions and possible consent. Neither receipt nor request creates assurance or lawful disclosure.

Correct answer A: A deficiency can exist without an identified misstatement.

SA 265 paragraph 6-8/A5 distinguish existence/significance from actual identified error; classify using supported judgment.

Correct answer D: Whether their combination constitutes a significant deficiency.

SA 265 paragraph 8/A8 address combination and judgment, without an automatic number rule.

Correct answer C: Timely written significant-deficiency communication to governance.

SA 265 paragraph 9 requires writing; quantification and exhaustive control testing are not prerequisites.

Correct answer B: Direct communication to management may be inappropriate, without removing required governance writing.

SA 265 paragraph 10(a)/A20 qualify management communication; SA 265 paragraph 9 governance writing remains.

Correct answer A: Appropriate oral communication can satisfy the other-deficiency communication.

SA 265 paragraph 10(b)/A23 allow oral form for these other deficiencies; appropriate attention and audience still matter.

Correct answer C: Current communication is still needed and may reference the previous communication.

SA 265 A17 permits repeating or referencing description but not silence merely because it was reported before.

Correct answer A: No; management/governance remedial cost-benefit choices do not cancel auditor communication.

SA 265 A16 retains paragraph9 duty while entity decision-makers evaluate remedy costs and benefits.

Correct answer D: Explain potential effects; quantification is not required.

SA 265 paragraph 11(a)/A28 distinguish explaining potential effects from mandatory quantification.

Correct answer D: Describe the proposal accurately and distinguish it from verified implementation.

SA 265 A28 permits response/verification information; a proposal is not evidence of implementation or effectiveness.

Correct answer C: Governance composition, entity complexity and the nature of deficiencies.

SA 265 A15 requires circumstance-sensitive detail, not a fixed length or audience exclusion.

Correct answer C: State the reported matters are limited to identified deficiencies concluded sufficiently important for governance attention.

SA 265 paragraph 11(b) sets the context; it neither establishes completeness assurance nor removes other SAs work requirements.