Related Party Transactions
101 deficiencies · 18 led to a wrong opinion · 8 on a significant-risk area
How audits fail in Related Party Transactions
The recurring ways firms fell short. Click any one to read the real inspection findings.
- Other testing deficiency28
A deficiency that doesn't fall into one of the more specific patterns above.
7 wrong opinion1 significant risk - Accounting or disclosure treatment not evaluated19
The firm didn't evaluate whether the accounting or disclosures conformed with GAAP, or didn't identify departures from GAAP or omitted disclosures.
4 wrong opinion - Little or no substantive testing17
The firm performed little or no substantive testing over the account, disclosure, or assertion.
3 wrong opinion4 significant risk - Confirmations / alternative procedures10
The firm didn't obtain confirmations, or didn't perform sufficient alternative procedures when confirmations weren't returned.
- Accuracy/completeness of client data not tested8
The firm used issuer-prepared schedules, reports, or system data without testing that they were accurate and complete.
1 significant risk - Controls not identified or tested6
The firm didn't identify and/or test controls it needed to rely on for the account or assertion.
1 significant risk - Journal entries / fraud procedures6
Deficiencies in testing journal entries or in responding to identified fraud risks.
3 wrong opinion1 significant risk - Reliance on a specialist or pricing service2
The firm relied on a specialist, pricing service, or third party without sufficiently evaluating that work.
- Management review controls not fully evaluated2
The firm tested a management review control but didn't evaluate the specific procedures the reviewer performed, or the control's precision.
- Estimate method, model, or data not evaluated2
The firm didn't evaluate the method, model, or underlying data the issuer used to develop an estimate or fair value.
1 wrong opinion - Estimate assumptions not evaluated1
The firm didn't sufficiently evaluate the reasonableness of the significant assumptions behind an estimate.