Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 49

Which of the following engagement planning procedures would most likely assist the auditor in identifying related-party transactions before the balance-sheet date?
A) Interviewing internal auditors about their reporting responsibilities.
B) Reviewing accounting records for recurring transactions occurring near year-end.
C) Inspecting communications with the client's legal counsel regarding recorded contingent liabilities.
D) Scanning the minutes for significant transactions with members of the board of directors.