Recognize the Related Parties
The auditor should review information provided through the management and directors recognize the names of all identified related parties and should perform the following process in respect of the completeness of this information as:
a) Review prior year working papers about the names of identified related parties;
b) Review the entity's process for reorganization of related parties; Inquire such as to the affiliation of officers and directors along with other entities;
c) Review shareholder records to find out the names of principal shareholders or, whether appropriate, get a listing of principal shareholders from the share register;
d) Review minutes of shareholders and the board of directors and other relevant statutory records such as the register of directors' interests;
e) Inquire of further auditors currently included in the audit, or predecessor auditors, such as to their knowledge and information of additional related parties; and
f) Review the entity's income tax returns and further information supplied to regulatory agencies.
Whether, there the risk of significant related parties remaining undetected is low, in the auditor's judgment, these procedures should be modified as suitable. Whereas the financial reporting framework needed disclosure of related party relationships such as IAS 24, the auditor should be satisfied which the disclosure is sufficient.