Summary of SA 265 – Communicating Deficiencies in Internal Control to TCWG

Summary of SA 265

Communicating Deficiencies in Internal Control to TCWG

Deficiency in internal Controls

When internal controls required to prevent, detect or correct material misstatements on timely basis is either :-

v Missing ;or

v Fails

Auditor’s Duty

v To identify the material deficiencies;

v To communicate to the TCWG material deficiencies in internal control;

v Provided that such communication must be in;

· Writing;

· On a timely basis;

· With an appropriate level of authority;

Contents of deficiency Communicated

v A description of deficiency;

v Potential impact on financial statements;

v Sufficient information to explain such deficiency to the management & the TCWG,

v A statement that the auditor’s responsibility is only to provide opinion on financial statements only;

v Auditor is not responsible to report on the effectiveness of internal controls;

v Deficiencies found during the audit & significant in the opinion of the auditor have been communicated.