Auditing Services in Dubai - Auditing Conflicts Of Interest - Spectrum Accounts

Keen understanding of the client’s third-party transactions is necessary to avoid any conflicts with the audit.It is essential to be aware that one client has businesses involved with another client, represented by the same firm. Auditing Services in Dubai , If one firm is representing two or more clients who are interrelated to each other through material transactions, it would be prudent for the firm to keep only one of the clients and let go of the remaining ones. However, to avoid any issues of this sort, it is essential to make sure that the transactions are recorded and correctly accounted for and disclosed in the financial statements . Affiliates: For accomplishing a transparent audit, it is necessary to know what a related party is and what types of transactions may occur between relevant parties. If corporation Uno owns and controls corporation Pi then, corporation Uno and Pi are affiliates of each other. Now, if the corporation Pi owns shares of any ot...