Define the Term "Related Party" and Discuss Why an Auditor

question 161

Essay

Define the term "related party" and discuss why an auditor should identify the client's related parties early in the audit.

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Definitions:

Ethics

The moral principles that govern a person's behavior or the conducting of an activity, often guiding decision-making and actions in a professional setting.

Code of Ethics

A set of principles and rules designed to guide behavior and decision-making within an organization or profession.

Organizational Values

The core principles and beliefs that guide the actions and behaviors of an organization and its members, defining its culture and ethical stance.

Ethical Principles

Fundamental guidelines or moral values that dictate the right and wrong ways of conducting oneself or performing actions.