What do you communicate to the audit committee during and at the end of an audit?
What the interviewer wants to hear
- Auditor responsibilities and planned scope and timing
- Significant risks and key audit matters
- Significant findings including difficulties and uncorrected misstatements
- Significant control deficiencies in writing
- Independence confirmation for listed entities
Model answer
Under SA 260, communication with those charged with governance is two-way and happens at planning and at completion. At planning, I explain our responsibilities, the planned scope and timing, materiality approach and the significant risks we have identified, such as revenue recognition or a complex estimate, and invite their views on fraud risks and other matters. During and at the end, I share significant findings: our views on accounting policies, estimates and disclosures, significant difficulties during the audit, such as delays in getting information, and corrected and uncorrected misstatements. Under SA 265, I report significant deficiencies in internal control in writing. For listed entities, I discuss the proposed key audit matters and confirm our independence, including non-audit services provided. I also raise any suspected fraud or non-compliance with laws. Good communication means the committee hears about problems early, not for the first time in the audit report.
Can you answer it under time pressure?
Take a timed medium round and get scored on every answer.
More medium Auditor questions
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