The main procedure for identifying related party transactions is:
A)External confirmation.
B)Management inquiry.
C)Analytical review.
D)Observation.

Question

Quizplus · Accepted Answer

The main procedure for identifying related party transactions is management inquiry. This involves asking management about any transactions or relationships they have with related parties. This is because management is usually the most knowledgeable about any potential transactions with related parties. While the other procedures may also be used in the audit process, for identifying related party transactions, the most appropriate and effective method is management inquiry.

The Main Procedure for Identifying Related Party Transactions Is