AUD question

  • Creator
    Topic
  • #193701
    Muse0407
    Participant

    Hi,

    I read an explanation for the following question from Ninja MCQ, but I still don’t get why the answer is “C”. Can anyone please clarify it for me?

    <question>

    An auditor most likely would modify an unmodified opinion if the entity’s financial statements include a footnote on related party transactions:

    A. disclosing loans to related parties at interest rates significantly below prevailing market rates.

    B. describing an exchange of real estate for similar property in a nonmonetary related party transaction.

    C. stating that a particular related party transaction occurred on terms equivalent to those that would have prevailed in an arm’s-length transaction.

    D. presenting the dollar volume of related party transactions and the effects of any changes in the method of establishing terms from prior period.

    Thanks!

  • You must be logged in to reply to this topic.