What it is
AU-C 260 requires the auditor to communicate certain matters to those charged with governance: the auditor’s responsibilities, the planned scope and timing, and significant findings from the audit. Significant findings go in writing when oral communication would not be adequate.
This template is the end-of-audit letter (often called the SAS 114 letter) with the required topics, and a few common additional ones, as headings.
When to use it
- At the end of each audit, addressed to the board, audit committee or owners.
- Split the planning section out as a separate letter if you communicate scope at the start.
What’s inside
- Auditor responsibilities under GAAS and planned scope and timing
- Qualitative aspects of accounting practices: policies, estimates and disclosures
- Difficulties encountered, corrected and uncorrected misstatements
- Disagreements with management, representations requested, consultations with other accountants
- Other significant matters and restricted-use paragraph
Standard cited
This template follows AU-C 260. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 260 explained.
Questions
Is the AU-C 260 letter the same as the AU-C 265 letter?
No. AU-C 260 covers the audit generally: responsibilities, scope and significant findings. AU-C 265 covers internal control deficiencies. Many firms send both together, but they meet different requirements.
Who are those charged with governance in a small company?
The people responsible for overseeing the entity’s strategic direction and accountability, such as the board, audit committee, owners or members. In an owner-managed business they may be the same as management.
Related templates
- Management Letter — Internal Control Communication (AU-C 265)
- Summary of Uncorrected Misstatements (AU-C 450)
- Audit Planning Memo (AU-C 300)
Last updated 11/04/2026. All free templates.