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Most auditors assess the risk of material misstatement as high for related parties and related-party ...

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Most auditors assess the risk of material misstatement as high for related parties and related-party ...

Most auditors assess the risk of material misstatement as high for related parties and related-party transactions because

▸ of the unique classification of related-party transactions required on the balance sheet.

▸ of the lack of independence between the parties.

▸ of the unique classification of related-party transactions required on the income statement.

▸ it is required by generally accepted accounting principles.

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

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