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Hello,
I’d like to know what does a non-disclosure of related parties transactions material by nature( to director) do to the audit opinion and where does it appear on the audit report.
Am I correct in assuming related parties transactions are a complex audit matter and should be automatically considered a significant risk when taking on an engagement of a small family enterprise or a very large parent group?
Can I flag this as a detection risk? Although I do know the examiner wants me to rather highlight risks that have been discussed in more detail.
If you dowload our notes you will find that they are searchable – there is a whole chapter given to related parties. Accounting requirements are assumed knowledge of SBR/P2.
It’s inherent risk and non-disclosure (i.e. non-compliance with IAS 24) would merit an “except for” qualification if material.
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