# SA 260 – Communication with TCWG: Process, Adequacy & Documentation
## The Communication Process
The auditor must communicate with those charged with governance (TCWG) regarding:
- Form, timing and expected general content of communications (established upfront)
- Significant audit findings — must be in writing if oral communication would be inadequate
- Auditor independence — in writing for listed entities only
> Written communications need not include all matters that arose during the audit.
### What the Auditor Communicates
| Category | Examples |
|---|---|
| Auditor's responsibilities | Forming and expressing an opinion; the audit does not relieve management of its duties |
| Planned scope & timing | Nature, extent and timing of audit procedures |
| Significant findings | Qualitative aspects of accounting policies; significant difficulties encountered; circumstances affecting the auditor's report |
### Independence Communication (Listed Entities Only)
A statement that the engagement team and others in the firm have complied with relevant ethical requirements regarding independence.
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## Adequacy of the Communication Process
The auditor must evaluate whether two-way communication with TCWG has been adequate.
If communication has not been adequate, the auditor must evaluate the effect on:
1. Assessment of risks of material misstatement
2. Ability to obtain sufficient appropriate audit evidence
3. Take appropriate action accordingly
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## Documentation (SA 260 read with SA 230)
| Mode of Communication | Documentation Requirement |
|---|---|
| Oral | Record when communicated, to whom, and what was communicated |
| Written | Retain a copy as part of the audit file |
> Communicating significant deficiencies in IC in writing reflects the importance of these matters and assists TCWG in fulfilling their oversight responsibilities.