ISA 265 — Communicating Deficiencies in Internal Control to Those Charged with Governance and Management
ISA 265 is an international pronouncement addressing communication of relevant control deficiencies identified during the audit. It addresses communicating significant deficiencies in internal control to those charged with governance in writing and communicating appropriate matters to management. A significant deficiency is determined by professional judgement and is not the same as every minor control weakness.
Worked example
The auditor communicates a significant absence of segregation in payments to those charged with governance.
Common mistake
Not every deficiency is significant; evaluate its importance and communicate significant deficiencies in writing as required.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |
