Question: An auditor would be most likely to consider modifying an otherwise unmodified opinion if the client s financial statements include a note on related party

An auditor would be most likely to consider modifying an otherwise unmodified opinion if the client

s financial statements include a note on related party transactions

Explaining the business purpose of the sale of real property to a related party.

Disclosing compensating balance arrangements maintained for the benefit of related parties.

Presenting the dollar volume of related party transactions and the effects of any change in the method of establishing terms from that used in the prior period.

Representing without substantiation that certain related party transactions were consummated on terms equivalent to those obtainable in transactions with unrelated parties.

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