SA 260 requires the auditor to communicate clearly with those charged with governance about the auditor's responsibilities, the planned scope and timing of the audit, and significant findings. It is a two-way exchange, agreed in advance, so that serious matters do not reach the board for the first time in the final week.
Last reviewed: 17 October 2026. Facts checked. We ran web searches on SA 260 and read summaries of the international standard (ISA 260), an ICAI exposure draft listing on taxguru.in, and practitioner guides. We could not open the final ICAI text of SA 260, so where the lists below follow the international standard, we say so, and paragraph numbers are not quoted. Check the Indian standard for exact wording before you rely on a list. The examples are invented.
Who are "those charged with governance"?
It is the person or group with responsibility for overseeing the entity's strategic direction and its accountability, including financial reporting. In a listed company that is usually the board and its audit committee. In a small private company the same person may be both director and owner-manager. In that case the standard's logic is that communicating with management is enough, if management are the only people in charge of oversight.
The auditor should decide who the right audience is, early. For a large company with an audit committee, our post on the audit committee in India shows who normally sits there.
What the auditor communicates
The international standard groups the content into four parts. SA 260 follows the same structure, though we did not verify every item against the Indian text.
1. The auditor's responsibilities
That the auditor is responsible for forming and expressing an opinion on the financial statements, and that the audit does not relieve management or those charged with governance of their own responsibilities. This is also the place to recall the limits of reasonable assurance; see SA 200 explained.
2. Planned scope and timing
An overview of how the audit will be done, which risks drive it, and when the main stages fall. Sharing this lets the board raise matters the auditor may not know about, such as a planned restructuring.
3. Significant findings
These are matters from the audit that matter to the oversight of financial reporting. In the ISA list they include:
- the auditor's views on significant qualitative aspects of accounting practices, including policies, estimates and disclosures;
- significant difficulties met during the audit;
- significant matters discussed, or the subject of correspondence, with management;
- written representations the auditor asked for;
- circumstances that affect the form and content of the auditor's report;
- any other matters the auditor judges significant to oversight.
4. Independence
For listed entities, the standard also expects communication on independence. We could not confirm the scope in the Indian text, so check it for your client.
Deficiencies in internal control that the auditor has found are dealt with in a separate standard, SA 265. See control deficiency, significant deficiency and material weakness for how they are graded.
When to communicate
The international standard says the auditor discusses with those charged with governance the basis and timing of communications. Because of the nature of a matter, the auditor may communicate sooner than agreed. A practitioner guide suggests agreeing a rhythm with the client, and raising serious matters straight away.
A simple calendar for an annual audit:
| Stage | What to discuss |
|---|---|
| Before fieldwork | Responsibilities, scope, timing, risks, who to contact |
| During fieldwork | Difficulties, delays, any suspected fraud or non-compliance, sooner than agreed |
| Before the report is signed | Findings, uncorrected misstatements, report form, representations |
| After the report | Anything that came up after, if needed |
The pattern to avoid is silence until the last day and then a long list. By then the board cannot act without moving the signing date.
Oral or written?
The ISA allows either, depending on the entity's size, structure, the sensitivity of the matter and how often the parties meet. Written communication is a requirement in the UK and Ireland, while elsewhere oral communication can suffice if the working papers record the discussion. For India, we did not confirm what the Indian standard says on this point. A safe habit is to confirm important points by email or a letter, whatever the standard minimum is.
Putting it into the file
Good SA 260 documentation does not need to be long. For each communication, record:
- date and mode;
- who attended, or who received it;
- what was said, in a few lines;
- what the board or management decided in response;
- any follow-up pending.
If a matter is communicated orally, a short note to the file is the evidence it happened. Our post on audit documentation covers what makes a note defensible. For fraud-related communications, read Form ADT-4 and section 143(12), which is a legal reporting duty on top of the standard.
Frequently Asked Questions
What is SA 260 about?
It is the Standard on Auditing on communication with those charged with governance: what the auditor says about responsibilities, scope, timing and significant findings.
Who are those charged with governance?
The people responsible for overseeing the entity's direction and financial reporting. Often the board or the audit committee.
Must communication be in writing?
Under the international standard, it may be oral or written depending on circumstances. Check the Indian text for the minimum, and confirm important points in writing anyway.
How is SA 260 different from SA 265?
SA 260 covers communication generally. SA 265 covers communicating deficiencies in internal control to those charged with governance and management.
When should a serious matter be raised?
As soon as it is known. The ISA allows the auditor to communicate sooner than agreed when the nature of the matter calls for it.
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Last reviewed: 17 October 2026. Facts checked. Opened: web search results, summaries of ISA 260, an ICAI exposure draft listing and practitioner guides; our own site posts. Could not open: the final ICAI text of SA 260. Check scope, lists and wording there.
Statutory facts on this page are checked against their sources, and the page says where it relied on secondary reporting. How we verify · Report an error