CAF-8 · Chapter 11 · Question 5 of 10
Which of the following audit procedures would most likely help an auditor identify undisclosed related party transactions?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Reviewing the board of directors’ minutes and shareholder records.
Explanation
Minutes and share registers often reveal the identities of major shareholders and directors' outside business interests, which are primary sources of related parties.
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