PSA 260

Philippine Standard on Auditing 260

COMMUNICATIONS OF AUDIT MATTERS

WITH THOSE CHARGED WITH GOVERNANCE

Auditing Standards and Practices Council

PSA 260

PHILIPPINE STANDARD ON AUDITING 260

COMMUNICATIONS OF AUDIT MATTERS

WITH THOSE CHARGED WITH GOVERNANCE

CONTENTS

Paragraphs

Introduction 1-4

Relevant Persons 5-10

Audit Matters of Governance Interest to be Communicated 11-12

Timing of Communications 13-14

Forms of Communications 15-17

Other Matters 18-19

Confidentiality 20

Laws and Regulations 21

Effective Date 22

Acknowledgement 23-24

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.