Related party
A related party is a person or entity related to the reporting entity under the applicable accounting standard, including specified relationships involving control, joint control, significant influence or key management personnel. Auditors evaluate identification, transactions and required disclosures in context.
Worked example
A director controls a supplier trading with the company; the auditor evaluates whether the relationship and transactions require disclosure.
Common mistake
Do not assume every commercial relationship is a related party relationship, or that disclosure alone proves transactions were at arm’s length.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |
| ACCA | FR | Supporting | September 2026–June 2027 |
| ACCA | SBR | Direct | September 2026–June 2027 |