ISA 550 - Related Parties - Refresher
Identifying, Assessing, and Reporting Related Party Transactions Under ISA 550
About This Course
Course Information
Related party relationships often create complex challenges for auditors. This refresher course on ISA 550 is designed to help you strengthen your understanding of how to identify, assess, and report related party transactions accurately. Through a mix of reading and video modules, you’ll revisit key definitions, learn how to recognize undisclosed relationships, and review practical procedures for evaluating transactions that may pose audit risks. The course also explores real-world cases and best practices for documentation and communication with management and those charged with governance. Whether you’re returning to audit work after a break or aiming to update your knowledge, this course ensures you stay aligned with ISA 550 requirements and maintain professional scepticism throughout the audit process. By the end, you’ll be able to apply the standard more confidently and improve the quality of your audit judgments and reporting.
Certificate on Completion
This course is made up of videos, questions and additional reading materials, and accounts for 2 units of CPD. One unit is the equivalent of one hour of learning.
Course Sections
This is a 2 unit CPD course that is made up of following contents:
- Introduction to ISA 550 and Its Purpose (video)
- Understanding Related Parties and Relationships (interactive content)
- Auditor’s Responsibilities and Risk Assessment (video)
- Identifying and Evaluating Related Party Transactions (interactive content)
- Audit Evidence and Procedures (video)
- Disclosure Requirements and Reporting (interactive content)
- Common Pitfalls and Case Studies (video)
- Communication and Documentation Best Practices (video)
- Integration with Other ISAs (interactive content)
- Quizzes
- Additional readingsWorking examples (quiz)
What You Will Learn
- Identify related party relationships and transactions that may pose risks of material misstatement in financial statements
- Explain the auditor's responsibilities under ISA 550, including procedures to detect undisclosed related party dealings
- Assess the risk of material misstatement arising from related party transactions, including those outside the normal course of business
- Evaluate audit evidence from contracts, confirmations, board minutes, and shareholder registers to verify related party disclosures
- Describe how enforcement cases such as Enron and Satyam illustrate the consequences of failing to detect related party fraud
- Apply professional skepticism when reviewing management representations about related party relationships and transaction terms
- Distinguish between adequate and inadequate related party disclosures, and communicate findings to those charged with governance
Who This Course Is For
- Auditors returning to practice who need to refresh their understanding of ISA 550 requirements
- Audit seniors and managers responsible for planning and executing related party audit procedures
- Accountants preparing for professional exams that cover auditing standards, including ISA 550
- Internal auditors who coordinate with external audit teams on related party identification and testing
Prerequisites
- A working understanding of financial statements and the audit process
- Familiarity with core auditing standards such as ISA 315 (risk assessment) and ISA 330 (audit responses)
Frequently Asked Questions
Course Details
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