The Auditor's Responsibility Related to Related Party Relationships and Transactions

question 65

Multiple Choice

The auditor's responsibility related to related party relationships and transactions is

• A)to obtain an understanding of related party relationships and transactions sufficient to determine if fraud is present
• B)to obtain an understanding of related party relationships and transactions sufficient to determine if misstatements are present
• C)to obtain an understanding of related party relationships and transactions sufficient to determine if fraud risk factors are present
• D)to obtain sufficient appropriate audit evidence about whether related party relationships and transactions have been properly classified in the financial statements
• E)to obtain sufficient appropriate audit evidence about whether related party relationships and transactions have been appropriately identified,accounted for,and disclosed in the financial statements
• F)both A and B
• G)both C and E
• H)both D and E

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Definitions:

Manual Accounting Systems

Traditional systems of accounting that use physical ledgers and books to record financial transactions manually.

Design And Structure

Encompasses the planning and organizing of systems, processes, or physical layouts to achieve desired functional and aesthetic goals.

Information Outputs

The resulting data or information that is produced from a process or system.

Timely And Accurate

Describes information or processes that are delivered or completed within an expected time frame and with precision or correctness.