Final Answer:
Communications with those charged with governance should encompass audit procedures, adjustments, and consultations. However, discussions about major issues predating the auditor's retention are not typically included. So, the correct option is 4) major issues discussed with management before the auditor was retained.
Step-by-step explanation:
Communications between auditors and those charged with governance are essential for a transparent and effective audit process. The options provided pertain to the nature of information that should be shared during these communications. The first three options—summary of specific audit procedures, significant audit adjustments, and consultations with other accountants—are integral components of effective communication. These details ensure that those charged with governance are informed about the audit procedures undertaken, adjustments made to financial statements, and any consultations that might impact the audit's conclusions.
However, the fourth option—major issues discussed with management before the auditor was retained—stands out as an exception. The communication between auditors and governance typically focuses on the ongoing audit engagement and relevant matters within the audit period.
Major issues predating the auditor's retention, being outside the scope of the current audit, are not typically included in these communications. This limitation is logical, as the auditor's responsibility and focus are on the current audit period, and issues predating their engagement are considered historical and unrelated to the current audit objectives. Thus, the correct choice is option 4, as it does not align with the standard content of communications in the audit process.