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Types of Transaction - Related Party
Fundamentally two types of transactions which arise between a related party and a company as:
A. It is usual for members of a collection to trade along with each other. Those entered in the ordinary course of business.
B. Those not engaged in the ordinary course of business or that may include misleading presentation of the accounts or fake on the company, its creditors or members.
Type (a) commonly deserves no individual audit attention. However the auditor must ensure which they in realty arise in of business at arm's length in the ordinary course.
Type (b) is whether problems may arise and whether scandals have occurred.
The Companies Act prohibits loans to directors and where they happens utilizes full disclosure. The law not allows for the giving of financial assistance about the purchase of or subscription for a company's own shares. The rights of directors the law restricts to acquire non-cash assets from the company or about the company to attain non-cash assets from its directors. Significant shareholding of more than 5% must be notified into the company within seven days.
Share and deposits Shares may consist of subscription shares and paid up shares. Interest on shares might be credited to the accounts rather than being paid to ensure proper co
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Analyse the ratios in conjunction with the additional information and identify from your analysis, implications for the audit and any particular audit steps that need to be underta
You are the partner in charge of the audit of Drugs4U Ltd, a company which develops, manufactures and sells to the a trade market a wide range of drugs which promote healthy living
Objectivity - External Auditor Report Many accounting figures are subjective and contain substantial terms of subjective judgment. Many more business transactions have financ
Q. What is Transferred Basis? Transferred Basis - A transferred basis is the foundation of property in the hands of a transferor, donor or GRANTOR. In this sense a prior owner'
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