Auditors must also take into consideration the identification of material contracts, commitments, and related party transactions which require disclosure in the financial statements and/or the footnotes to the financial statements.

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Auditors are responsible for identifying material contracts, commitments, and related party transactions that may impact the financial statements and should be disclosed to stakeholders. These items can have a significant impact on the financial health of the company and must be disclosed to ensure transparency and accuracy in financial reporting.

Auditors Must Also Take into Consideration the Identification of Material