Audit of Long-term Liabilities

 A significant concern for auditors as it relates to auditing long-term liabilities is accounts requiring management estimates due to the possibility of management bias. 

Research and summarize ISA540 and AU-C 540. For each standard, identify the indicators of possible management bias. Discuss whether the presence of an indicator of management bias means there is a material misstatement.

Requirements:

• Write a paper of 4-6 pages in length, not counting the title and reference pages, which you must include.
• Use terms, evidence, and concepts from class readings, including professional business language.
• Cite at least 3 credible, academic, or professional sources for this assignment, outside of the textbook. Format your paper according to Writing and APA. (Links to an external site.)