Specific Areas of Audit Risks A14-16b

Auditor’s responsibility for related party relationships, and transactions, during risk assessment.

1. Inquire of management and others, about known situations concerning related parties.
2. Perform risk assessment procedures, to understand internal controls over related party transactions.
3. Consider management override and relationships with related parties.
4. Treat any significant related party transactions, outside normal business operations, as significant risk.