Michum Inc

question 46

Multiple Choice

Michum Inc. has related parties with a company owned by the CEO's brother that comprise about $500 000. There are also related party transactions with the owner (about $250) and with two of the officers ($750 and $1000) respectively. Which related parties should be identified and included in audit documentation?

• A) those with material transactions only
• B) those that had transactions in the current year only
• C) all related parties
• D) only those that could lead to a conflict of interest

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Definitions:

Group Pressure

The influence exerted by a group to encourage a person to conform to the group's standards.

Behavior

The actions or reactions of an individual or group in response to external or internal stimuli.

Disruptive Group Member

An individual within a group who causes disturbances or hinders the group's progress towards goals, often through negative behavior or attitudes.

Shirker

A person who avoids or neglects their duties or responsibilities.