Related entity transactions can most often be discovered by auditors while performing which of the following procedures?
A)confirming transactions with related parties.
B)examining unusual transactions and inquiry.
C)reviewing random canceled checks for endorsement.
D)evaluating reconciliations and related approvals.

Question

Quizplus · Accepted Answer

Examining unusual transactions and inquiry can reveal related entity transactions as these often involve atypical terms or conditions that stand out during an audit.

Related Entity Transactions Can Most Often Be Discovered by Auditors