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 the session 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 judgement applied
Course Content
Module 01
Introduction and Overview
Module 02
Identify and Assess RMM
Module 03
Risk Responses
Module 04
Concluding and Reporting
Module 05
Common Pitfalls and How to Overcome Them
Module 06
Bringing It All Together
Module 07
Resources