Auditor Communication
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GAO-03-673G Government Auditing Standards > Chapter 6 General, Field Work, and Reporting Standards for Attestation Engagements > Auditor Communication
6.06 The standard related to auditor communication for attestation engagements performed in accordance with GAGAS is:
Auditors should communicate information regarding the nature, timing, and extent of planned testing and reporting on the subject matter or assertion about the subject matter, including the level of assurance provided, to officials of the audited entity and to the individuals contracting for or requesting the attestation engagement.
6.07 During the planning stages of an attestation engagement, auditors should communicate to officials of the audited entity and to individuals contracting for or requesting the services information regarding the nature, timing, and extent of testing and reporting including the level of assurance provided and any potential restriction of reports associated with the different levels of assurance services, to reduce the risk that the needs or expectations of the parties involved may be misinterpreted. See paragraph 6.02 for a discussion of the levels of attestation services. Auditors should use their professional judgment to determine the form and content of the communication, although written communication is preferred. Auditors may use an engagement letter, if appropriate, to communicate the information. If the attestation engagement is part of a larger audit, this information may be communicated as part of that audit. Auditors should document the communication in their attest documentation.
6.08 Auditors should communicate their responsibilities for the engagement to the appropriate officials of the audited entity, including
a. the head of the audited entity,
b. the audit committee or board of directors or other equivalent oversight body in the absence of an audit committee, and
c. the individual who possesses a sufficient level of authority and responsibility for the subject matter or the assertion.
6.09 In situations where auditors are performing the engagement under a contract with a party other than the officials of the audited entity, or pursuant to a third-party request, auditors should also communicate with the individuals contracting for or requesting the engagement, such as contracting officials or legislative members or staff. When auditors are performing the engagement pursuant to a law or regulation, auditors should communicate with the legislative members or staff who have oversight of the auditee. 1 Auditors should coordinate communications with the responsible government audit organization and/or management of the audited entity, and may use the engagement letter to keep interested parties informed. If an engagement is terminated before it is completed, auditors should write a memorandum for the record that summarizes the results of the work and explains why the engagement was terminated. In addition, auditors should communicate the reason for terminating the engagement to management of the audited entity, the entity requesting the engagement, and other appropriate officials, preferably in writing. This communication should be documented.
1This requirement applies only to situations in which the law or regulation specifically identifies the entity to be subject to an attestation engagement. Situations in which the mandate to have an attestation engagement not specifically identified, such as attestation engagements required by the U.S. Department of Education, are excluded.
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