What it is
AU-C 260 has the auditor tell those charged with governance about the audit’s scope and timing, about significant findings, and about matters other AU-C sections require, such as significant deficiencies, fraud, noncompliance and expected modifications to the report. Several matters must be in writing and others may be oral.
This checklist groups them into planning-stage matters, significant findings and matters under other sections, with columns for the source, the date and method of communication, whether it was done and the working paper reference. A final section evaluates whether the two-way communication was adequate.
When to use it
- Planning the audit, to schedule the planning communication and the end-of-audit meeting.
- Completing the audit, to confirm every required matter was communicated and documented.
- For an owner-managed entity, to record where governance and management are the same.
What’s inside
- Planning-stage communications: responsibilities, scope and timing, risks, specialists, independence where required
- Significant findings: qualitative aspects, difficulties, misstatements, disagreements, representations, other issues
- Matters under AU-C 265, 240, 250, 550, 570, 560, 705, 706, 701, 720 and 725
- Evaluation of the adequacy of two-way communication and documentation
Standard cited
This template follows AU-C 260 / AU-C 265 / AU-C 240 / AU-C 250. 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, AU-C 265 explained, AU-C 240 explained, AU-C 250 explained.
Questions
Does the communication have to be written?
Not always. AU-C 260 requires some matters in writing, such as significant deficiencies and material weaknesses under AU-C 265, and allows others orally. Document oral communications with date, attendees and content.
What if governance and management are the same people?
AU-C 260 has special treatment where all of those charged with governance are involved in managing the entity. Communication then focuses on matters not already communicated to them in their management role. Record it.
Does this replace the standard?
No. It is an aid that cites sections, not paragraph numbers. The standards govern.
Related templates
- Communication With Those Charged With Governance (AU-C 260)
- Management Letter — Internal Control Communication (AU-C 265)
- Audit Completion and File Review Checklist (AU-C 230 / AU-C 700)
Last updated 11/05/2026. All free templates.