TY - JOUR
T1 - Auditing related party transactions
T2 - A literature overview and research synthesis
AU - Gordon, Elizabeth A.
AU - Henry, Elaine
AU - Louwers, Timothy J.
AU - Reed, Brad J.
PY - 2007/3
Y1 - 2007/3
N2 - We examine research relevant to auditing related party transactions to contribute to the PCAOB project on this topic and to provide other policy makers, auditors, and academics with an overview of relevant literature. Specifically, we report on the challenges associated with the identification, examination, and disclosure of related party transactions. Additionally, we address issues and research evidence related to nondisclosure and reliance on management assertions, risk assessment, materiality, fraud detection, the effect of related party transactions on corporate governance, and international auditing issues. Overall, we believe that the findings in academic research and the significance of related party transactions in recent prominent fraud cases are consistent with the PCAOB's reconsideration of auditing of related party transactions. We conclude with implications for further research.
AB - We examine research relevant to auditing related party transactions to contribute to the PCAOB project on this topic and to provide other policy makers, auditors, and academics with an overview of relevant literature. Specifically, we report on the challenges associated with the identification, examination, and disclosure of related party transactions. Additionally, we address issues and research evidence related to nondisclosure and reliance on management assertions, risk assessment, materiality, fraud detection, the effect of related party transactions on corporate governance, and international auditing issues. Overall, we believe that the findings in academic research and the significance of related party transactions in recent prominent fraud cases are consistent with the PCAOB's reconsideration of auditing of related party transactions. We conclude with implications for further research.
UR - http://www.scopus.com/inward/record.url?scp=39049167696&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=39049167696&partnerID=8YFLogxK
U2 - 10.2308/acch.2007.21.1.81
DO - 10.2308/acch.2007.21.1.81
M3 - Article
AN - SCOPUS:39049167696
SN - 0888-7993
VL - 21
SP - 81
EP - 102
JO - Accounting Horizons
JF - Accounting Horizons
IS - 1
ER -