ISA 550. Related parties

Abstract

The auditor must be provided sufficient knowledge of relationships and transactions with related parties. The existence of related parties generated by themselves, increased risk of material inaccuracies in the financial statements with respect to other transactions with unrelated parties, although the standard cites examples such as increasing the corporate complexity a holding company so that it becomes difficult tracking and identification of related party transactions. The standard reflects the responsibilities which the auditor has in this area.