Page 5 - Use Of Confirmations And Related Parties
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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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