Write briefly about 'communications with those charged with governance'-(SA-260).

Communication with those charged with Governance SA 260 The standard deals with the auditor's responsibility to communicate with those in charge with governance in relation to an audit of financial statements. It also describe the requirements regarding communication with those in charge with governance and regarding matter to be communicated and documentation required. This standard also spells out the distinction between the Management and those charged with Governance. Auditor should communicate about overall scope of audit, selection/changes in significant accounting policies, potential effect on financial statements of any significant risk and exposures, such as pending litigation, adjustments to financial statements arising out of audit that have a significant effect on entity's financial statement; material uncertainties related to events and conditions that may cast significant doubt on entity's ability to continue as a going concern, disagreement with the management about matters that could be significant to entity's financial statements or, auditor's report; expected modification to auditor's report. Auditor should communicate matters of governance interest on timely basis. Auditor's communication may be made orally or in writing. In case of oral communication, auditor should document their oral communications and response thereof.