Lesson: Governance Structures

This lesson delves into various governance structures and their implications on the communication with auditors. The discussion includes the differences between smaller and larger entities, the distinction between those charged with governance and management, and the roles of different governing bodies such as board of directors, committees, and individual proprietors. Focus is given to the importance of audit committees in the communication process and how their responsibilities may differ depending on the type of entity. The lesson wraps up by outlining good governance principles, emphasizing the need for effective communication and periodic meetings between auditors and audit committees.