What is the primary focus of ISA 260 regarding audit communication?

The primary focus of ISA 260 is indeed on communicating audit findings with those charged with governance. This standard establishes the framework for auditors to effectively communicate key matters arising from the audit of financial statements. It emphasizes the importance of the relationship between the auditor and those charged with governance, such as the board of directors or audit committee.

Under ISA 260, auditors are required to share significant findings from the audit, which may include issues related to internal control, material misstatements, and the overall audit approach. The intent is to ensure that those in governance can fulfill their oversight responsibilities and make informed decisions based on the auditor’s findings. This involves discussing matters such as the auditor's evaluation of the appropriateness of accounting policies, the adequacy of disclosures, and any significant difficulties encountered during the audit.

The other options do not capture the primary focus of ISA 260. Discussing financial statement preparation, informing management about audit staffing, or establishing external communication protocols are relevant in different contexts but do not reflect the core intent of ISA 260, which is fundamentally about enhancing communication of audit findings with governance bodies to foster better accountability and transparency.