The project sponsor should absolutely have to the issue list. This is necessary to ensure a common understanding of issues and facilitate communication which is important to maintaining a good relationship among all stakeholders.
To **manage a sponsor's expectations** it is important to include in your issue list:
* **Severity** : High/Medium/Low. Only High severity issues are showstoppers.
* **Impact** : If the issue is not resolved, what is the impact on the deliverable. Also equally as important, if the issue needs to be resolved, what will is the time/cost impact.
* Usual items such as owner, target resolution date, etc.