Unformatted text preview: equally exclusive, aspects: adequate disclosure and fraud detection. Some related-party transactions may be the direct result of the relationship. Without that relationship, the transaction might not have occurred at all or might have had significantly different terms. Therefore, disclosure of the nature and amount of transactions of related parties is necessary for the proper understanding of the financial statements. Insufficient disclosures of related-party transactions may result in misleading information in financial statements, and the auditor should be concerned with identifying these transactions while completing the audit and evaluating the sufficiency of disclosure of them. 14-43 a. a defense that is based on evidence adequate to warrant setting aside a default judgment against the defendant in civil litigation b. guarantee debts of others c. litigation and claims...
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This note was uploaded on 08/23/2011 for the course ACC 302 taught by Professor Peoples during the Spring '11 term at Kaplan University.
- Spring '11