$1.$ An auditor is required to establish an understanding with a client regarding the services to be performed for each engagement. This understanding generally includes:

a$.$ The auditor$$s responsibility for determining the preliminary judgments about materiality and audit risk factors.

b$.$ Management$$s responsibility for identifying mitigating factors when the auditor has doubt about the entity$$s ability to continue as a going concern.

c$.$ The auditor$$s responsibility for ensuring that those charged with governance are aware of any significant deficiencies in internal control that come to the auditor$$s attention.