Importance of related party transactions, Auditing

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.

Posted Date: 1/24/2013 8:00:16 AM | Location : United States







Related Discussions:- Importance of related party transactions, Assignment Help, Ask Question on Importance of related party transactions, Get Answer, Expert's Help, Importance of related party transactions Discussions

Write discussion on Importance of related party transactions
Your posts are moderated
Related Questions
The Tonka Manufacturing Company conducts its annual physical inventory at the end of the calendar year as a result of the auditor's assessment of non-operating internal controls in


what is the role of audit trainee in managing the discrete assignment?

Skills and Objectivity of Expert The skills and competence of the expe rt Whether planning to require the work of an expert, so the auditor should assess the professiona

how EDP audit is carried out

Question 1: What do you meant by Proactive Project Management? Define Proactive Project Management Bring out significance of Proactive Project Management with an exa

Valuation - Long Term Contracts The basis of valuation should be cost plus attributable profit as benefits less foreseeable losses and progress payments both receivable and re

Assessment item 2 Case Study and Report Due date: 19-08-2016 Length: 2000 words Task Question 1 (5%) Case: Battersby and Associates Chartered Accountants is a successful mid-t

I have a auditing case study i need to complete in chapter 8 of Auditing & Assurance service (fifteenth edition) by Alvin A. Arens, Randal J. Elder and Mark S. Beasley. I don''t kn