ISA 265 – COMMUNICATING DEFICIENCES IN INTERNAL CONTROL TO THOSE CHARGED WITH GOVERNANCE

 An auditor obtains an understanding of internal control relevant to the audit when identifying and assessing the risks of material misstatement. In making those risk assessments the auditor may identify deficiencies in internal control. Also, deficiencies in internal control may be detected by an auditor at any other stage of the audit.

ISA 265 deals with the auditor’s responsibility to communicate appropriately to those charged with governance and management deficiencies in internal control1 that the auditor has identified in an audit of financial statements

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