Why do auditors ask about related party transactions and where do they typically do this?
What will be an ideal response?
Auditors ask about involvement with related party transactions in the engagement letter. Auditors have a
responsibility to obtain reasonable assurance that related parties have been identified and disclosed in the
financial statements. These types of transactions occur at non arm's length and therefore may not reflect
the normal terms of trade that occur with arm's-length transactions.
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In a direct access file system
a. backups are created using the grandfather-father-son approach b. processing a transaction file against a maser file creates a backup file c. files are backed up immediately before an update run d. if the master file is destroyed, it cannot be reconstructed
The Investment Advisers Act of 1940 requires persons and firms giving investment advice to clients to ________
A) attend education seminars B) demonstrate expertise in economics and finance C) impose administrative sanctions on securities buyers D) register with the Securities and Exchange Commission
The World Intellectual Property Organization is responsible for administering the Paris and Berne Conventions
Indicate whether the statement is true or false
Forte, Inc. is studying whether to expand operations by adding a new product line. Which of the following choices correctly denotes the costs that should be considered in this decision? Sunk CostOpportunity CostA.YesYesB.YesSometimesC.NoYesD.YesNoE.NoNo
A. Choice A B. Choice B C. Choice C D. Choice D E. Choice E