Auditing and Attestation- Certified Public Accountant (CPA) Practice Exam -

What is NOT a requirement for written communication to those charged with governance under U.S. GAAS?

1. An overview of the planned scope and timing of the audit.

2. The adequacy of financial statement disclosures.

3. Significant difficulties encountered in performing the audit.

4. Disagreements with management, whether resolved or not.

The correct answer is: An overview of the planned scope and timing of the audit.

The correct answer highlights that providing an overview of the planned scope and timing of the audit is not a requirement for written communication to those charged with governance under U.S. Generally Accepted Auditing Standards (GAAS). Instead, U.S. GAAS emphasizes communication of issues that pertain directly to the audit findings and areas of importance affecting the financial statements. Written communication to those charged with governance is generally required to include information regarding significant difficulties encountered during the audit, disagreements with management, and the adequacy of financial statement disclosures. These elements are crucial for enhancing the transparency of the audit process and ensuring that governance bodies are fully informed of any concerns or challenges that may impact the financial reporting. In contrast, while it is certainly useful for auditors to communicate the planned scope and timing of an audit in practice, it is not mandated by U.S. GAAS as a necessary element of formal communication to those charged with governance. The focus here is on issues that affect the audit's execution and outcomes rather than the process of planning itself.