Disclosures of related parties and related party transactions have always been a major area of weakness. Some financial statements may be issued with serious omissions or incorrect information in the related party disclosure note. On the other hand, directors tend to see this standard as a grey area and, as a result, in order to be compliant with the disclosure requirements, end up giving unnecessary information such as all the names of related parties.
This seminar will focus on the illustrative examples of related party disclosure notes and will also highlight the main differences between IAS 24 and GAPSME requirements on the said topic. Furthermore, this seminar will also cover the external auditor’s responsibilities with respect to related parties’ transactions and disclosures.
Related party transactions are considered to be high risk not just from an audit risk standpoint but also from an anti-money laundering (AML) point of view. The auditor, as subject person, is required to carry out AML procedures on his customers and related party transactions can be easily used to manipulate or hide certain financial information by anyone who has access to the financial records of the Company. During this seminar, we will also be taking a look at certain AML considerations in terms of transaction monitoring which historically might have been overlooked by auditors.