Reasons for the requirement to disclose related-party transactions include:
A) These transactions will always be eliminated in a consolidation so otherwise there would be no record of them in a set of consolidated accounts.
B) There is a history of corporate scandals involving related-party transactions in Europe, Australia, the US, and Canada.
C) There is a risk that the auditor may be a related party and this must be disclosed.
D) There is a history of corporate scandals involving related-party transactions in Europe, Australia, the US, and Canada and a risk that the auditor may be a related party and this must be disclosed.
Correct Answer:
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