ABC Ltd. is a listed company with an annual turnover of 1,000 crores. The company has appointed three joint auditors, ST and Associates, TR and…

As per SA 260 “Communication with Those Charged with Governance", in case of listed entities, the auditor shall include following matters in the communication regarding auditor's independence to those charged with governance: (I) A statement that the engagement team and others in the firm as appropriate, the firm and, when applicable, network firms have complied with relevant ethical requirements regarding independence and (II) (i) All relationships and other matters between the firm, network firms, and the entity that, in the auditor's professional judgment, may reasonably be thought to bear on independence. This shall include total fees charged during the period covered by the financial statements for audit and non-audit services provided by the firm and network firms to the entity and components controlled by the entity. These fees shall be allocated to categories that are appropriate to assist those charged with governance in assessing the effect of services on the independence of the auditor and (ii) The related safeguards that have been applied to eliminate identified threats to independence or reduce them to an acceptable level.