Lesson: Disagreements with Management

In this lesson, Nick Palazzolo discusses the topic of disagreements with management during an audit. He emphasizes the importance of communicating any disagreements that arise during the audit to those charged with governance, regardless of whether they are resolved or material. Disagreements may arise due to a number of factors, such as the application of accounting principles, scope of the audit, disclosures in the financial statements, and wording of the audit report. However, differences of opinion based on incomplete facts or preliminary information that are later resolved are not considered disagreements.