CA Goutam Sharma (Chartered Accountant in Practice) (468 Points)
08 July 2014How can we recognise any transactions as related party transactions from audit point of view....??
RoHaN k
(CA & CS)
(308 Points)
Replied 08 July 2014
For audit point of view , it is not possible to post here everything , but you may want to refer followings steps :
1] Refer list of relatives under sec 2(77) of CA,2013. and Chapter I Rules.,
2] Also refer sec. 188 and Rules for types transactions between related parties and threshold limits .
3] Apply this in case of transaction entered between Interested director , company and related parties.
4] Look for approval criteria mentioned u/s 188 has been met. [refer companies resolutions]
5] Apply SA 580 [ Mgt Representation ] for related parties and their transactions.
6] For reporting refer relevant SA.of Audit.
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