Can someone explain this question to me

  • Creator
    Topic
  • August 25, 2015 at 9:22 pm #196436
    ITSTIMETOPASS
    Participant

    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 change in the method of establishing terms from prior periods.

    DONE

    AUD: PASSED!
    REG: Q4 2015
    FAR:
    BEC:

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