In the light of increasing public interest in the quality of audits, the faculty considers that the audit of related parties is an area where further improvements in audit quality and efficiency can be achieved.

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.