PSA 260 - Auditing Standards and Practices Council...

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Auditing Standards and Practices Council Philippine Standard on Auditing 260 COMMUNICATIONS OF AUDIT MATTERS WITH THOSE CHARGED WITH GOVERNANCE
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PHILIPPINE STANDARD ON AUDITING 260 COMMUNICATIONS OF AUDIT MATTERS WITH THOSE CHARGED WITH GOVERNANCE CONTENTS PSA 260 Introduction Relevant Persons Audit Matters of Governance Interest to be Communicated Timing of Communications Forms of Communications Other Matters Confidentiality Laws and Regulations Effective Date Acknowledgement Paragraphs 1-4 5-10 11-12 13-14 15-17 18-19 20 21 22 23-24
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PSA 260 Philippine Standards on Auditing (PSAs) are to be applied in the audit of financial statements. PSAs are also applied, adapted as necessary, to the audit of other information and to related services. PSAs contain the basic principles and essential procedures (identified in bold type black lettering) together with related guidance in the form of explanatory and other material. The basic principles and essential procedures are to be interpreted in the context of the explanatory and other material that provide guidance for their application. To understand and apply the basic principles and essential procedures together with the related guidance, it is necessary to consider the whole text of the PSA including explanatory and other material contained in the PSA not just the text which is black lettered. In exceptional circumstances, an auditor may judge it necessary to depart from a PSA in order to more effectively achieve the objective of an audit. When such a situation arises, the auditor should be prepared to justify the departure. PSAs need only be applied to material matters. The PSA issued by the Auditing Standards and Practices Council (Council) are based on International Standards on Auditing (ISAs) issued by the International Auditing Practices Committee of the International Federation of Accountants. The ISAs on which the PSAs are based are generally applicable to the public sector, including government business enterprises. However, the applicability of the equivalent PSAs on Philippine public sector entities has not been addressed by the Council. It is the understanding of the Council that this matter will be addressed by the Commission on Audit itself in due course. Accordingly, the Public Sector Perspective set out at the end of an ISA has not been adopted into the PSAs.
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Introduction PSA 260 1. 2. 3. 4. The purpose of this Philippine Standard on Auditing (PSA) is to establish standards and provide guidance on communication of audit matters arising from the audit of financial statements between the auditor and those charged with governance of an entity. These communications relate to audit matters of governance interest as defined in this PSA. This PSA does not provide guidance on communications by the auditor to parties outside the entity, for example, external regulatory or supervisory agencies.
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