The audit of related party relationships and transactions can be a challenging area for auditors. The need to improve audit procedures in this area is indicated by the results of external regulatory inspections. In their 2013 Summary report of inspection findings, the International Forum of Independent Audit Regulators (IFIAR) identified related party transactions as one of their inspection themes, making this is an issue in a number of countries. This section contains assistance for the practical implementation of ISA 550 Related Parties
This publication is a practical guide to the audit of related party relationships and transactions, providing suggestions in the form of a five-point action plan to strengthen audit quality in this area. It is set in the context of the significant change in approach that will be required under the revised ISA. It highlights the critical importance of planning the audit of related party relationships and transactions, the need to involve the entire audit team in this, to assign staff with the appropriate level of experience to audit this area and upfront discussions with the client to identify related parties.
Auditing related parties requires the auditor to brief and involve the entire audit team, to assign staff with the appropriate level of experience to audit this area and to hold upfront discussions with the client to identify related parties. The Audit of Related Parties in Practice, sets out a five point action plan for the auditor to follow in the implementation of ISA 550 through each stage of the audit process.
Articles written by practitioners and ICAEW staff in the area of related parties.