How do disclosures required by GAAP affect the auditors responsibilities for related party and related party transaction

Question:

How do disclosures required by affect the auditor’s responsibilities for related party and related party transaction information? Why is the auditor concerned if management makes disclosures indicating that non routine related party transactions are at arms length?

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...