All know related parties must be identified and included in the auditor's permanent files related to the client.

Question

Quizplus · Accepted Answer

It is true that all related parties must be identified and included in the auditor's permanent files related to the client. This helps the auditor to assess the risk of material misstatement and potential fraud related to related party transactions. It also helps the auditor to understand the nature and extent of the related party transactions and relationships that may affect the financial statements. The auditor may also communicate with the audit committee or management regarding the related party transactions if they are unusual or significant.

All Know Related Parties Must Be Identified and Included in the Auditor's