Question $1$

$(10$ marks total$)$

Communicating with Those Charged with Governance

ISA $($NZ$)260-$ Communication with Those Charged with Governance and ISA $($NZ$)265$

Communicating Deficiencies in Internal Control with Those Charged with Governance

and Management provide guidance to auditors in relation to communicating with

those charged with governance.

Required:

$($a$)$ Explain why it is important for auditors to communicate throughout the audit

process with those charged with governance.

$($b$)$ What are the benefits to the client and auditor respectively of the auditor

communicating internal control weaknesses in the Audit Management Letter.

$($c$)$ List FOUR types of matters an auditor may include in an Audit Management

Letter.