Lesson: Significant Findings and Difficulties During an Audit

In this lesson, Nick Palazzolo, CPA, discusses the communication of significant findings and difficulties during an audit. The lesson covers important communication topics between the auditor and those charged with governance, such as requesting further information, confirming understanding of specific transactions or events, and reporting fraud in funding. It also delves into significant difficulties encountered during the audit, which may include delays by management, unavailability of entity personnel, unwillingness by management to provide necessary information, and dealing with scope limitations. Additionally, the lesson touches on issues related to accounting estimates, accruing contingencies and commitments, and dealing with disagreements with management that may potentially lead to a modification of the auditor's opinion.