Related party toolkit for accountants and auditors.

• Position: Accounting and Auditing - Brief Article

The AICPA has issued Accounting and Auditing for Related Parties and Related Party Transactions, which provides guidance on related parties and related party transactions. The document is available at www.aicpa.org/news/relpty1.htm.

The related parties aspect of the audit is important because: Generally accepted accounting principles require disclosure of material related party transactions and certain control relationships; in the absence of adequate disclosure, financial statements may be distorted or misleading; and the instances of fraudulent...