Transactions not at arm's length
Presenters : Lettie Janse van Vuuren CA(SA)
Learning objectives
By the end of this event the attendee will:
- Understand the implications of transactions that are not at arm’s length on the auditor’s work:
- When ISA 550 (Related parties) applies;
- Risk assessment procedures - How ISA 550 expands on how ISA 315 and ISA 330 are to be applied;
- Be aware of possible indicators of transactions that are not at arm’s length during the audit;
- Be aware of questions to be considered to determine the audit implications of transactions that are not at arm’s length; and
- Be aware of the illustrative procedures which may be used for risk assessment and further procedures for transactions with the entity that might not be at arm’s length.
Content
The webinar will cover the following topics:
- Introduction.
- Implications of transactions that are not at arm’s length.
- Determining whether ISA 550 (Related parties) applies.
- Summary of Definitions of a Related Party as per:
- ISAs.
- IFRS (IAS 24).
- Companies Act.
- JSE Listings Requirements.
- National Treasury.
- King IV.
- Income Tax Act.
- IRBA Code.
- Risk assessment procedures.
- How ISA 550 expands on application of ISA 315 and ISA 330.
- Specific considerations:
- Possible indicators.
- Questions to be considered.
- Illustrative Procedures for risk assessment.
- The effect on the auditor’s report.
