Standard on Auditing - 210 Revise

According to SA-210 Revised

3. The objective of the auditor is to accept or continue an audit engagement

only when the basis upon which it is to be performed has been agreed, through:

(a) Establishing whether the preconditions for an audit are present; and

(b) Confirming that there is a common understanding between the auditor

and management and, where appropriate, those charged with governance of

the terms of the audit engagement.

 

What is the meaning of those charged with governance

Replies (7)

those charged with governance is used to describe the role of the person entrusted with planning, direction ,supervision and control of an entity.Those charged with governance are accountable for ensuring that the org.achieves its objectives and financial reporting.

Agree with Prateek

Correct........mr. Prateek is right

aggree ....wid prateek

Originally posted by : PRATEEK

those charged with governance is used to describe the role of the person entrusted with planning, direction ,supervision and control of an entity.Those charged with governance are accountable for ensuring that the org.achieves its objectives and financial reporting.

 Agreed. Then how it differs from management and what is the use of separately mentioning the term those charged with governance.

DEAR  AKHIL

Then how it differs from management and what is the use of separately mentioning the term those charged with governance.
 

THE TERMINOLOGY THOSE CHARGED WITH GOVERNANCE IS NOT DEFINED ANYWHERE IN SA(STANDARD OF AUDITING).BUT IN  CORPORATE WORLD IT IS DEFINED AS THE RESPONSIBILITY OF GROUP OF PERSON(MAINLY THE BOARD OF DIRECTIORS,TOP LEVEL MANAGMENT) WHO ARE SUPPOSE TO SET OBJECTIVES, LAY DOWN CODE OFCONDUCT/ETHICS ,PLANNING,SUPERSIVION,WORKING ON  WEAKNESSES IN THE INTERNAL CONTROL SYSTEM ETC,AND  IT IS THERE RESPONSIBILITY TO COMMUNICATE ALL THESE MATTERS TO THE MANAGMENT OF THE COMPANY AND IMPLEMENT THESE GUIDELINES ,

WE HAVE ALSO STUDIED IN SA 400 RISK ASSESMENT AND INTERNAL CONTROL SYSTEM THAT IF THE AUDITOR FINDS ANY IRREGULARITY IN THE INTERNAL CONTROL SYSTEM HE IS SUPPOSE TO COMMUNICATE THE MATTER IN THE FORM OF A WRITTEN LETTER KNOWN AS LETTER OF WEAKNESS TO THOSE CHARGED WITH GOVERNANCE.

 Auditing, Review and Other Standards (formerly known as AAS) - Complete Text

https://www.caclubindia.com/forum/auditing-review-and-other-standards-formerly-known-as-aas--87694.asp         

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