The following requirements relate to Ms. Stitt’s testimony about the audit committee…

The following requirements relate to Ms. Stitt’s testimony about the audit committee presentation:

 [a] Visit the PCAOB's website to identify where guidance related to auditor communications with audit committees resides.

[b] Provide a brief overview of the requirements in PCAOB auditing standards about the auditor's communications with those charged with governance. Be sure to describe the overall purpose of this required communication.

 [c] What does PCAOB AS No. 18, Related Parties, say about communications with audit committees?

[d] Based on your overview of the auditor’s communication responsibilities, why was it appropriate for KPMG to discuss the related party transactions with Hollinger International’s Audit Committee?

 [e] Based on your review of the transcript about the audit committee meeting, describe whether you believe KPMG exercised due professional care in pursuing this issue with Hollinger International’s Audit Committee. Did KPMG accomplish the intent of auditing standards? What could KPMG have done differently with respect to this issue during this meeting?

 

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