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

Instructor: Nick Palazzolo

Cite this lesson

This lesson delves into various aspects regarding management's responsibility in financial reporting, touching upon essential concepts like related party disclosures, going concern, litigation, and estimates. The lesson emphasizes the importance of understanding the respective responsibilities of management and the auditor, as well as contingent losses and their implications. Additionally, the lesson provides insights on the required procedures for an auditor to achieve reasonable assurance over management's representation and disclosures. Finally, the lesson highlights the auditor's responsibilities in verifying management's representation and overall financial statement responsibility.

Updated: June 22, 2023 Create an account

"Examprep.ai helped me pass all 4 CPA exams on the first try. I highly recommend. I especially like the feedback and ratings the software provides so I know where to focus my time."

Daniel H., CPA

"I can't recommend ExamPrep.ai enough. Nick's lessons turned concepts I struggled with into strengths. I was able to pass FAR right before other exams expired!"

Andrew K, CPA

"I just want to say thank you for the great lesson videos. I couldn't stay awake through lectures of another course. After watching all your FAR lessons I was finally able to pass!"

Alyssa M., CPA Candidate

Recommended Lessons

Management's Responsibility for Disclosing Related Parties, Going Concern, Litigation, Estimates, & More Overview

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

Introduction to Management's Representation and Responsibility

Reliance on Management Representations

Obtaining Written Representations

Transcript

Instructor: Nick Palazzolo

Nick Palazzolo is head instructor of ExamPrep.ai CPA Review. Nick's teaching style is engaging & upbeat, combining practical Big 4 tax & assurance expertise with years of 1-on-1 coaching. His lessons are concise and emphasize what you need to know to pass. Whether you're a recent grad or working full-time, we’re confident you can conquer your CPA exams with Nick’s review.

Cite this lesson

Link to this page

[[ citeExample ]]

Copy to clipboard

Copy URL to clipboard

Copy HTML to clipboard

And we made it. We're done. We're done with this big old lesson. A lot of great points to be had here and a lot of tie ins with the FAR exam. Make sure you're familiar with all these points. Quite heavily tested on the exam here. In summary, let's wrap up a few of the important points. First off, we want to understand the responsibilities that fall under management and those that fall under the auditor. We each have varying responsibilities. Make sure you know the differences there. We want to be familiar with contingent losses, going concern and estimate issues, what you do in each of those circumstances, how you test them, and what you do if there's disagreements, etc. We also want to memorize the procedures that an auditor must perform in order to obtain reasonable assurance over management's representation and disclosures. And lastly, we want to understand what an auditor's responsibility is to verify management's representation and the responsibility of the financial statements. A lot of responsibility being passed around on both sides. You got this. You can handle it. I believe in you. I've got faith. Keep going strong, and I'll see you in the next lesson.

To unlock this lesson, sign up for a free account.

Get more from this lesson

Create an account 7-day free trial. No credit card required.

Engagement Planning, Understanding an Entity, & Understanding its Internal Control

Module: 2 Concepts, 36 Lessons

Management's Responsibility for Disclosing Related Parties, Going Concern, Litigation, Estimates, & More Overview

1:09

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

4:41

Introduction to Management's Representation and Responsibility

2:56

Reliance on Management Representations