Lesson: Required Communication to Management and Governance

In this lesson, Nick Palazzolo covers the required communication to management and governance during an audit engagement. He highlights various scenarios when auditors need to convey crucial information, such as significant risks, internal control approaches, factors affecting materiality, and the involvement of internal audit staff. The lesson delves into the communication of significant deficiencies and material weaknesses, their reporting timeline, and steps to address uncorrected issues. Moreover, the lesson explores the reporting of significant audit findings, including qualitative aspects of accounting policies, difficulties experienced during the audit, and management consultations with other auditors. Finally, Nick sheds light on selected aspects of the communication between the auditor, management, and those charged with governance to ensure a thorough understanding of the audit process and its findings.