Final answer:
The correct statement is that 2.communication with governance should include management changes in significant accounting policies.
Step-by-step explanation:
The correct statement concerning an auditor's required communication with those charged with governance is that this communication should include any management changes in the application of significant accounting policies. Therefore, the second option is the right one. According to auditing standards, auditors are required to communicate with those charged with governance, typically the board of directors, about the scope and timing of the audit before the auditor's report is issued. They must also discuss significant findings from the audit, including any significant changes in accounting policies, disagreements with management, or difficulties encountered during the audit process.
In addition, if there are any significant audit adjustments that were proposed by the auditor and recorded by management, these must be communicated to those charged with governance. Finally, it is also important that any significant matter communicated to those charged with governance should be communicated to management as well, ensuring transparency and thoroughness in communication. The failure in corporate governance, as evidenced by the Lehman Brothers case, highlights the importance of accurate and transparent communication between an auditor, the board, and management.