A procedure the auditor would employ in identifying related party transactions is:
A) reviewing previous period working papers.
B) reviewing shareholder records.
C) reviewing minutes of shareholders and directors meetings.
D) all of the above.

Question

Quizplus · Accepted Answer

All of the options listed are procedures an auditor might employ to identify related party transactions. Reviewing previous period working papers can reveal past related party transactions that may still be relevant. Reviewing shareholder records helps identify significant shareholders who might be related parties. Reviewing minutes of shareholders and directors meetings can reveal decisions or transactions involving related parties.

A Procedure the Auditor Would Employ in Identifying Related Party