52. Are there new requirements regarding communicating deficiencies in internal control to those charged with governance and management?

Yes. Canadian Auditing Standard (CAS) 265, Communicating Deficiencies in Internal Control, requires the auditor to communicate appropriately to those charged with governance and management deficiencies in internal control that the auditor has identified during the audit and that, in the auditor’s professional judgment, are of sufficient importance to merit their respective attentions. CAS 265 requires that specific matters be included in the written communication of significant deficiencies to those charged with governance and management.

The two key terms defined in CAS 265 are “deficiency in internal control” and “significant deficiency”. This later term denotes the type of deficiency in internal control that the auditor should report to those charged with governance. The term “significant deficiency” is used in all CASs rather than “material weakness,” used in previous standards.