 |
| Bangladesh Standard on Audit(BSA-260) |
What is the Bangladesh standard on Audit(BSA-260) ? describes in details:
BSA-260: Communication with Those Charged with Governance is a standard issued by the Institute of Chartered Accountants of Bangladesh (ICAB). It provides guidelines on how auditors should communicate with the entity's governance bodies (such as the board of directors or audit committee) during the audit of financial statements.
In short, BSA-260 addresses the following key points:
1.Objective of Communication:
The standard emphasizes the importance of effective communication between the auditor and those charged with governance to ensure that significant matters arising during the audit are discussed and appropriately addressed.
2.Matters to Communicate:
Audit Plan and Scope:
The auditor should inform those charged with governance about the overall audit plan, including the scope and timing of the audit.
Significant Findings:
The auditor should communicate significant findings, such as material misstatements, significant deficiencies in internal controls, or any issues encountered during the audit.
Auditor's Responsibilities:
The auditor should clarify their responsibilities regarding the audit, including the responsibility to express an opinion on the financial statements.
Independence:
The auditor should confirm their independence from the entity to those charged with governance and address any potential threats to independence.
Misstatements and Disagreements:
The auditor should discuss any disagreements with management or significant misstatements that were corrected during the audit.
3.Timing of Communication:
The auditor should communicate with those charged with governance at key points during the audit, such as at the planning stage, throughout the audit, and upon completion of the audit.
4.Significant Issues:
The auditor must report any significant issues that arose during the audit, including any non-compliance with laws and regulations, fraud, or going concern concerns.
5.Responsibility of Governance Bodies:
The governance bodies are responsible for overseeing the financial reporting process, and the auditor should engage with them to ensure that they are aware of their responsibilities and the auditor's findings.
6.Documentation:
The auditor must document the discussions and communications with those charged with governance.
In summary, BSA-260 highlights the importance of clear, timely, and transparent communication between the auditor and those charged with governance. This ensures that the governance body is informed about key audit matters and can take necessary actions, enhancing the overall quality and transparency of the audit process.