Importance of related party transactions, Auditing

Assignment Help:

Importance of Related Party Transactions

Whenever the existence of about transactions and parties among such parties are considered ordinary features of business, the auditor requires being aware of them since:

a) The financial reporting framework may need disclosure in the financial statements of certain related party transactions and relationships, such that required with IAS 24;

b) The related party transactions or existence of related parties may affect the financial statements. Let an example, the entity's tax expense and liability may be affected through the tax laws in various jurisdictions that require special consideration while related parties exist;

c) The basis of audit evidence effects the auditor's assessment of its expenses and reliability. A greater degree of reliance may be placed at audit evidence which is created through or obtained from unrelated third parties; and

d) A related party transaction might be motivated through other than ordinary business considerations, let an example, even fraud and profit sharing.


Related Discussions:- Importance of related party transactions

Demonstrate knowledge of the current tax-auditing , 1. Demonstrate knowledg...

1. Demonstrate knowledge of the current tax, auditing and accounting issues that concern governmental and not-for-profit entities 2. Explain the difference between various funds (

General phases of control evaluation, General phases of control evaluation ...

General phases of control evaluation are: Phase 1: Understand and document • Understand the client's internal control • Document the understanding of internal control o

Fairness - auditing, Fairness -  Auditing The word fair can have the ...

Fairness -  Auditing The word fair can have the following meanings:  on the other hand clear, plain and distinct and on the one impartial, equitable and simple.  When fair is

Audit evidence, State four factors considered determining sufficiency of a...

State four factors considered determining sufficiency of audit evidence

Audit procedures for obtaining audit evidence, AsList and define five audit...

AsList and define five audit procedures for obtaining audit evidence. (ii) Why is it necessary to obtain corroborating evidence for inquiry and observation? (iii) What is the dif

Ias 40 investment properties - audit evidence, IAS 40 Investment Properties...

IAS 40 Investment Properties - Audit Evidence Typical audit evidence might include: Physical verification of the situation and location of the investment property and c

Audit planning, What document usually forms the basis of the audit team bri...

What document usually forms the basis of the audit team briefing?

Auditing, State the FIVE threats contained within Auditor''s Code of Ethics...

State the FIVE threats contained within Auditor''s Code of Ethics and Conduct and for each threat list ONE example of a circumstance that may create the threat.

CODE OF eTHIC, Kelley Brent, CA, is a partner in a one-office CA firm that ...

Kelley Brent, CA, is a partner in a one-office CA firm that audits Dane, Inc., a closely held corporation. Kelley''''s sister was recently appointed as the chief financial officer

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd