A practitioner's walk-through of the revised standard on auditing for related-party transactions.

Contents of the walk-through

1. Scope of SA 550 — what counts as a related party and what triggers heightened review
2. Risk-assessment procedures — SA 315 cross-references
3. Identifying transactions outside the normal course of business
4. Substantive procedures — documentation, third-party confirmation, and review of approval
5. Reporting in the auditor's report and in the financial statements
6. Three illustrative scenarios drawn from the firm's audit work, anonymised

Audience

The walk-through is intended for engagement-team members handling related-party transactions in their audits, and for articled assistants in their second and third years of training. It assumes basic familiarity with the Standards on Auditing and the Companies Act, 2013.

Note

The video is professional information per § 3.3.8 of the Institute's Code of Ethics, 2020. It does not reference the firm or the firm's clients in any solicitational sense, per § 2.14.1.6(iv)(D) and (Q). Practitioners should refer to the actual standard, the Institute's Guidance Note on Related Party Disclosures, and the latest amendments for the position applicable to their engagements.