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ASA 550 - Related Parties - April 2006
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Main Features
This Auditing Standard establishes mandatory requirements and provides explanatory guidance on the auditor’s responsibilities and audit procedures regarding related parties and transactions with such parties. This Auditing Standard requires the auditor to:
(a) consider the risk of material misstatements in the financial report resulting from the existence of related parties and related party transactions, when performing audit procedures and when evaluating and reporting the results of such procedures;
(b) assess the risk that related parties and related party transactions will not be identified, or appropriately disclosed and/or measured;
(c) be alert for unusual transactions which may indicate the existence of previously unidentified related parties or related party transactions; and
(d) communicate with those charged with governance on significant related party relationships and related party transactions.