Lesson: Management's Responsibility for Disclosing Related Parties, Going Concern, Litigation, Estimates, & More Objectives

this lesson delves into key aspects of management responsibilities that are relevant to an audit. It highlights the factors that can cause substantial doubt about an entity's ability to continue as a going concern and the significance of proper disclosures. The lesson also discusses audit procedures for detecting litigations, claims, and assessing management's disclosures of these liabilities. Further, it emphasizes the potential impact of significant estimates on the financial statements, management biases, and how auditors should assess the reasonableness of these estimates. Moreover, the lesson covers the importance of obtaining written representations from the management and the factors to consider when restricting the use of written communication. Finally, it ends by explaining audit procedures to identify related party transactions and relationships, and the importance of accurately disclosing them.