The Related parties audit

Author:Mircea BOZGA, PwC

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Keywords:related parties, related parties audit

Abstract:
The parties are considered to be related if one of more of these has the capacity to control or to significantly influence the other party (LAS 24.5). The significant influence is relevant when making both the financial and operational decisions. The parties are related when they are under joint control [IAS 24.3(a)].\r\nThe information about the related parties are relevant to the users of the financial statements because the existence of the control or of the influence can affect the terms of the transactions between the two parties. The understanding of the reports and terms of the transactions concluded between two related parties is relevant for understanding the financial statements of the entity.\r\n

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