Which of the following is/are among the procedures used by auditors to identify related parties?
A)Review financial statements of competitors.
B)Trace inventory quantities from the floor to the ledger.
C)Gain an understanding of the industry.
D)Review correspondence from the client's advisors, such as attorneys or consultants.

Question

Quizplus · Accepted Answer

Reviewing correspondence from the client's advisors, such as attorneys or consultants, is a relevant procedure to identify related parties. The other choices (A, B, and C) are not relevant procedures for identifying related parties.

Which of the Following Is/are Among the Procedures Used by Auditors