14 paragraphs found
… The auditor may also seek to understand the business rationale of such a transaction from the related … reality of the transaction and why it was carried out. A business rationale from the related party’s perspective that … with the nature of its business may represent a fraud risk factor. …
… In the presence of other risk factors, the existence of a related party with dominant … professional advisors may suggest unethical or fraudulent business practices that serve the related party’s purposes. The use of business intermediaries for significant transactions for …
… transactions outside the entity’s normal course of business enables the auditor to evaluate whether fraud risk factors, if any, are present and, where the applicable … establishes related party requirements, to identify the risks of material misstatement. …
… meeting the ASA 315 requirement to identify and assess the risks of material misstatement, [9] the auditor shall identify and assess the risks of material misstatement associated with related party … party transactions outside the entity’s normal course of business as giving rise to significant risks. …
… transaction outside the entity’s normal course of business not only by directly influencing the transaction … Such influence may indicate the presence of a fraud risk factor. …
… Many related party transactions are in the normal course of business. In such circumstances, they may carry no higher risk of material misstatement of the financial report than … may, in some circumstances, give rise to higher risks of material misstatement of the financial report than …
… responsibilities may not be limited to addressing the risks of material misstatement associated with related party … may also include a broader responsibility to address the risks of non‑compliance with law, regulation and other … that lay down specific requirements in the conduct of business with related parties. Further, the public sector …
… If the auditor has assessed a significant risk of material misstatement due to fraud as a result of … such as the following to obtain an understanding of the business relationships that such a related party may have … research, such as through the Internet or specific external business information databases. Review of employee …
… party transactions outside the entity’s normal course of business may provide audit evidence that these have been … management or those charged with governance, may indicate risks of material misstatement due to error or fraud. In … alone, however, may not be sufficient in concluding whether risks of material misstatement due to fraud are absent …
… group of persons without compensating controls is a fraud risk factor. [24] Indicators of dominant influence exerted … party include: The related party has vetoed significant business decisions taken by management or those charged with … management and those charged with governance regarding business proposals initiated by the related party. …