Communication is the systematic exchange of information through structured processes involving sender, receiver, message, medium, and feedback. Effective communication is fundamental to professional practice—it conveys complex financial information, builds client relationships, and ensures compliance. The communication process includes encoding (sender formulating message), transmission (through chosen medium), reception (receiver obtaining message), and decoding (receiver interpreting message). Feedback loops ensure understanding. For CA professionals, clear communication prevents misunderstandings, reduces liability, and builds credibility. Communication in professional contexts must be accurate, timely, complete, and appropriate. Regulatory compliance often requires specific communication formats and timing. Exam tip: In communication scenarios, identify breakdown points in the communication process and explain how to restore clarity—don't just identify the problem.