ISA 550 - RELATED PARTIES

 ISA 550 deals with the auditor’s responsibilities relating to related party relationships and transactions in an audit of financial statements.

The objectives of the auditor are to obtain an understanding of related party relationships and transactions to recognize fraud risk factors and conclude, based on the audit evidence obtained, whether the financial statements are affected by those relationships and transactions.

This standard requires auditors to perform audit procedures to assess whether relationships, transactions, or balances with related parties are properly accounted for or disclosed in accordance with the requirements of applicable financial reporting principles.

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