| A24. | The oversight of management by those charged with governance includes ensuring that the entity designs, implements and maintains appropriate internal control with regard to reliability of financial reporting, effectiveness and efficiency of operations and compliance with applicable laws and regulations. |
| A25. | The auditor may become aware of supplementary matters that do not necessarily relate to the oversight of the financial reporting process but which are, nevertheless, likely to be significant to the responsibilities of those charged with governance in overseeing the strategic direction of the entity or the entity's obligations related to accountability. Such matters may include, for example, significant issues regarding governance structures or processes, and significant decisions or actions by senior management that lack appropriate authorization. |
| A26. | In determining whether to communicate supplementary matters with those charged with governance, the auditor may discuss matters of this kind of which the auditor has become aware with the appropriate level of management, unless it is inappropriate to do so in the circumstances. |
| A27. | If a supplementary matter is communicated, it may be appropriate for the auditor to make those charged with governance aware that: |
| (a) | Identification and communication of such matters is incidental to the purpose of the audit, which is to form an opinion on the financial statements; |
| (b) | No procedures were carried out with respect to the matter other than any that were necessary to form an opinion on the financial statements; and |
| (c) | No procedures were carried out to determine whether other such matters exist. |
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