The auditing standards have identified transactions that may indicate the existence of related parties.These include
A)borrowing or lending at an interest rate or a rate of interest significantly above or below market rates
B)selling real estate at a price that differs significantly from its appraised value
C)exchanging property for similar property in a monetary transaction
D)making loans with scheduled terms for when and how the funds will be repaid
E)designing off-balance sheet debt agreements with one of the purposes being keeping the debt off the books of the company
F)both A and B
G)both C and D
H)both D and E

Question

Quizplus · Accepted Answer

Borrowing or lending at significantly above or below market rates (choice A) and selling real estate at a price significantly different from its appraised value (choice B) are both transactions that may indicate the existence of related parties, as they suggest that the parties involved may be manipulating the terms of the transaction for their own benefit. The other choices are not specific to related party transactions.

The Auditing Standards Have Identified Transactions That May Indicate the Existence