To gather evidence about transactions with related parties,an auditor would most likely
A)send account confirmations.
B)scan the aged trial balance for names of officers and directors.
C)perform analysis of receivables turnover.
D)scan the receivables sub-ledger for credit balances.

Question

Quizplus · Accepted Answer

Scanning the aged trial balance for names of officers and directors helps identify transactions with related parties, as these individuals are often involved in such transactions. This method directly targets the identification of related party transactions by looking for familiar names that could indicate a special relationship with the entity.

To Gather Evidence About Transactions with Related Parties,an Auditor Would