Document background
The Audit Communication Letter is a mandatory document required under Philippine Standards on Auditing (PSA) 260, serving as a formal communication channel between independent auditors and those charged with governance. This document is essential at the beginning of an audit engagement in the Philippines, outlining the planned scope and timing of the audit, significant risks identified, and establishing clear communication protocols. The letter must comply with Philippine regulatory requirements, including the Philippine Accountancy Act and relevant PSAs, while addressing specific client circumstances and industry considerations. It forms part of the audit documentation and may be reviewed by regulatory bodies such as the Philippine Securities and Exchange Commission for listed companies. The Audit Communication Letter helps ensure transparency, sets expectations, and documents the auditor's independence and professional responsibilities within the Philippine context.
