Once a related entity transaction is identified,the audit team will do which of the following?
A)ask the client to record the transaction differently.
B)call a board meeting to discuss the findings.
C)require that the transaction be excluded from the financial statements.
D)ensure that the transaction is properly disclosed.

Question

Quizplus · Accepted Answer

The audit team should ensure that the related entity transaction is properly disclosed in the financial statements. This will help provide transparency to users of the financial statements and allow them to make informed decisions based on the information provided. Asking the client to record the transaction differently, calling a board meeting, or requiring that the transaction be excluded from the financial statements are not appropriate actions unless there are significant issues with the transaction that go beyond mere related entity disclosure.

Once a Related Entity Transaction Is Identified,the Audit Team Will