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What is Challenges in Identifying Related Parties about?

Identifying related parties and related party transactions can be difficult for several reasons. Directors may be reluctant to fully disclose related parties or transactions to auditors. Related party transactions may not be easily identifiable in accounting systems if they are not separately classified. Materiality of related party transactions is also difficult to determine as transactions could occur at very small values but still be material due to their unusual nature.

Author

LimShuLing

Language

EN