Who Do They Know? Related Parties

Overview

Related party relationships and transactions are common, but they can create unique audit risks. This course provides a practical overview of CAS 550 and the auditor’s responsibilities for identifying related parties, understanding related party relationships and transactions, and assessing the related risks of material misstatement.

The course walks through the key requirements of CAS 550, including risk assessment procedures, significant transactions outside the normal course of business, fraud considerations, audit responses, disclosures, written representations and documentation. It also considers common challenges auditors encounter when related party relationships or transactions are complex, unusual or not readily apparent.

Throughout the course, technical requirements are supported by practical guidance and real-life examples to demonstrate how CAS 550 applies in actual audit engagements. The focus is on helping auditors recognize related party risks, ask better questions, design appropriate audit procedures and strengthen their audit documentation.

Learning Objectives

By the end of this course, participants will be able to:

• Understand the requirements of CAS 550
• Identify related and relationships and transactions relevant to the audit
• Appreciate fraud risk factors regarding related parties
• Evaluate RMM associated with related party transactions
• Design and perform appropriate audit procedures
• Document audit work effectively, including professional judgment applied

Verifiable CPD

1.5 hour