In Auditing Related Party Transactions, the Auditor Is Expected to Determine

question 15

Multiple Choice

In auditing related party transactions, the auditor is expected to determine:

• A) whether a particular transaction would have occurred if the parties had not been related.
• B) what the exchange price and terms would have been if the parties had not been related.
• C) if the related parties acted fraudulently.
• D) the substance of the transaction and its effects on the financial statements.
• E) the nature of the transaction by simply inquiring of management.

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Definitions:

Pique Technique

A method used to increase compliance by arousing curiosity or interest through an unusual request.

Yielding

Whether you “accept” (believe, and especially whether you change your attitude to agree with) the message.

Intended Audience

The specific group of people for whom a message, product, or service is directed.

Physically Able

Having the physical capacity and fitness to perform tasks or activities without restriction.