In auditing identified related party transactions, the auditor is expected to determine whether a particular transaction would have occurred if the parties had not been related or what the exchange price and terms would have been.

Question

Quizplus · Accepted Answer

The auditor's objective in auditing related party transactions is to determine whether the transactions have been properly identified, accounted for, and disclosed in the financial statements, not to assess what the terms or existence of the transactions would have been had the parties not been related.

In Auditing Identified Related Party Transactions, the Auditor Is Expected