Assume that you are a staff auditor working on long-term debt accounts of a client that is

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Assume that you are a staff auditor working on long-term debt accounts of a client that is a company where you are performing an audit in accordance with auditing standards issued by the International Auditing and Assurance Standards Board (IAASB). You notice that one of the client's loans might be with a related party because the loan is with a close family member of a key member of management. You are not sure whether this constitutes a related party. Further, if this loan is with a related party, you need additional guidance on the required disclosure of identified related party relationships and transactions. Refer to the Standards Appendix to the text to identify the standard that can address your questions. Obtain a copy of the relevant standard, define related party, determine whether your client has a loan with a related party, and discuss the required disclosure of identified related party relationships and transactions.

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Auditing A Risk Based Approach to Conducting a Quality Audit

ISBN: 978-1305080577

10th edition

Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg

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