Related Parties Flashcards
1
Q
Related parties
Complexity of relationships
Info systems not affective in identifying transactions therefore harder for auditor
Fraud is easier to commit due to deliberate attempt to conceal transactions
A
Obtain list of related parties
Carry out detailed tests of transaction and balances
Review board minutes of shareholders and directors to ascertain whether any related party discussions took place
Review bank confirmation letters for evidence of guarantor relationships
Confirm Correct disclosures within the financial statements
Obtain written representation regarding disclosure of all related parties
