Having Identified Related Party Transactions,the Auditor Should _______

question 18

Multiple Choice

Having identified related party transactions,the auditor should _______.

• A)confirm the terms and amounts of the transactions with the related parties
• B)inform the audit committee in writing
• C)consult with a fraud specialist to consider extended procedures
• D)consider including an emphasis of matter paragraph in the audit opinion

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Definitions:

Preoperational

A stage in Jean Piaget’s theory of cognitive development, where children from about 2 to 7 years old learn through pretend play but still struggle with logic and taking the perspective of other people.

Reductive

A method or approach that simplifies complex systems or phenomena by breaking them down into their most basic components or aspects.

Analytical Thinking

The process of breaking down complex information into smaller components for better understanding or problem solving.

Logical

Pertaining to or characterized by clear, rational, and coherent reasoning or thinking.