Page 5 - Use Of Confirmations And Related Parties
P. 5

USE OF CONFIRMATIONS & RELATED PARTIES




              Objectives of the topic (continued…)








            • Understand the concept of “related party” and a


                “related party transaction”.


            • Explain management’s and the auditor’s


                responsibilities regarding related party matters in

                the financial statements.



            • Describe the audit procedures that should be

                carried out to identify related party relationships

                and related party transactions.



            • Describe the procedures to determine whether an

                identified related party transaction is properly


                disclosed in the client’s financial statements.



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