Define the term "related party" and discuss why an auditor should identify the client's related parties early in the audit
What will be an ideal response?
A related party is an affiliated company, principal owner of the client company, or any other party with which the client deals, where one of the parties can influence the management or operating policies of the other. Transactions with related parties are important to auditors because accounting standards require that they be disclosed in the financial statements. Auditors need to be aware of who the client's related parties are early in the audit to enable the auditor to identify related-party transactions, especially those that have not been disclosed.
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Focused low-cost and focused differentiation strategies carry very little risk for the companies that make use of them.
a. true b. false
Shiyuan, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?
A) It is paid under the new individual policy. B) It is paid under the old group plan. C) It is not paid by either policy. D) It is paid pro rata by both plans.