Auditors cannot learn about potential related parties for an audit client by reviewing Securities and Exchange Commission (SEC) filings.

Question

Quizplus · Accepted Answer

Auditors can learn about potential related parties for an audit client by reviewing Securities and Exchange Commission (SEC) filings, as these filings often include disclosures about related party transactions and relationships. However, auditors should not rely solely on SEC filings and should also perform their own independent research and inquiries.

Auditors Cannot Learn About Potential Related Parties for an Audit