Related Entity Transactions Can Most Often Be Discovered by Auditors

question 42

Multiple Choice

Related entity transactions can most often be discovered by auditors while performing which of the following procedures?

• A)confirming transactions with related parties.
• B)examining unusual transactions and inquiry.
• C)reviewing random canceled checks for endorsement.
• D)evaluating reconciliations and related approvals.

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Definitions:

Normative Time

A societal or culturally established timeframe for when certain life events or developmental milestones are expected to occur.

Five-factor Model

A conceptual model based on the theory that five broad dimensions are sufficient to describe human personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Extraverted

Describes individuals who are outgoing, sociable and draw energy from being around other people.

Gregarious

Describing a person or animal that enjoys being in social groups and often seeks the company of others.