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Standard on Auditing - 210 Revise

Akhil Gupta (Manager F&A) (856 Points)

11 June 2010

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

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7 Replies

PRATEEK (ACA) (102 Points)
Replied 11 June 2010

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.

Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA) (8311 Points)
Replied 11 June 2010

Agree with Prateek

Kumar (Article) (922 Points)
Replied 12 June 2010

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

Piyush Tanwar (Assistant Manager - Accounts) (1432 Points)
Replied 12 June 2010

aggree ....wid prateek

Akhil Gupta (Manager F&A) (856 Points)
Replied 12 June 2010

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.

PRATEEK (ACA) (102 Points)
Replied 12 June 2010

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.

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