Which of the following audit procedures would be least likely to disclose the existence of related party transactions of a client during the period under audit?
A)Reading "conflict-of-interest" statements obtained by the client from its management.
B)Scanning accounting records for large transactions at or just prior to the end of the period under audit.
C)Reading minutes of the Board of Directors meetings for authorization or discussion of material transactions.
D)Confirming purchases and sales transactions with the vendors and/or customers involved.

Question

Quizplus · Accepted Answer

Confirming purchases and sales transactions with vendors and/or customers involved would likely disclose related party transactions, as related parties may be involved in such transactions. The other options may also provide some evidence of related party transactions, but are less direct and may not necessarily result in the discovery of such transactions.

Which of the Following Audit Procedures Would Be Least Likely