On The Job Training Guide - Audit Related Parties

Overview and Target Audience

The On-the-Job Training (OJT) Guide: Audit Related Parties is a comprehensive digital resource designed to enhance the capabilities of audit supervisors, managers, and audit staff working in Small and Medium Practices (SMPs). It aligns with the practical needs of professionals who are responsible for auditing related party transactions and ensuring compliance with financial reporting standards.

This guide is particularly useful for:

• Audit supervisors developing internal training programs.

• Small & Medium Practices (SMPs) that want to standardize their audit processes and build competencies among team members.

• New auditors and trainees looking to develop practical skills and a deeper understanding of complex related party audits.

Available for download on Payhip, this digital product provides a structured, hands-on learning approach for enhancing audit performance.

Key Areas Covered

This OJT guide offers task-focused learning modules, ensuring that auditors build the necessary knowledge and skills to efficiently handle related party audits. Key areas include:

1.Task Analysis and Audit Procedures

• Identifies core audit tasks related to related party transactions, such as:

• Verifying that related party transactions are conducted at arm’s length.

• Ensuring that all disclosures and classifications meet financial reporting standards.

• Confirming management’s representation on related party relationships and transactions.
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2.Competencies and Skills Development

• Builds critical audit skills, such as:

• Evaluating the reasonableness of assumptions made by management.

• Assessing the sufficiency and relevance of audit evidence.

• Identifying potential risks related to undisclosed relationships and side agreements.

• Develops the auditor’s ability to analyze transfer pricing and market valuations effectively.

3.Audit Standards and Compliance

• Aligns with the Singapore Standards on Auditing (SSA), particularly SSA 550 on Related Parties and SSA 540 on Auditing Estimates.

• Provides reference to FRS 24 to guide auditors in ensuring that financial statements contain all required disclosures related to related parties.

Practical Outcomes and Benefits

This OJT guide not only enhances the technical knowledge of auditors but also delivers tangible improvements in audit processes. Some key practical outcomes include:

1.Improved Audit Quality

• With a clear task analysis framework, audit teams can conduct more thorough reviews of related party transactions, ensuring compliance and reducing errors or oversight.

• The guide helps auditors identify risk areas proactively, improving audit planning and execution.

2.Standardized Training Programs

• The structured nature of this guide ensures that SMPs can deliver consistent training across their teams, promoting uniformity in audit methodology.
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• It equips supervisors with ready-made modules to train junior auditors on practical aspects of auditing related party transactions.
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3.Enhanced Communication with Clients

• Auditors will gain the skills needed to engage confidently with clients and management when discussing related party disclosures, proposed adjustments, and management representation letters.

• Ensures that all issues or outstanding matters are resolved efficiently, with documented communication and clarity on uncorrected misstatements.

4.Time and Cost Efficiency

• By providing step-by-step procedures, the guide streamlines audit tasks, reducing the time required to complete audits and improving team productivity.

• SMPs can save on external training costs by using the OJT guide to upskill their teams internally.

5.Audit Documentation and Compliance

• The guide emphasizes the importance of proper documentation, helping auditors meet regulatory requirements.
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• It also supports the completion of relevant audit schedules and working papers.

Why This Guide is Essential for SMPs

The OJT Guide: Audit Related Parties offers a practical and structured framework to improve the effectiveness of audit training and execution. It addresses common challenges in related party audits—such as identifying undisclosed transactions and ensuring fair value assessments—while equipping audit staff with the skills and knowledge needed to meet professional standards.

For SMPs looking to build competent and confident audit teams, this guide provides a ready-to-use resource that supports continuous learning and high-quality audits.

Get Your Copy on Payhip

This digital product is available for immediate download on Payhip, making it easy for audit firms to integrate the OJT guide into their training programs. Elevate your firm’s audit performance and ensure compliance with industry standards by purchasing the On-the-Job Training Guide: Audit Related Parties today!

✅ Format: Digital PDF

✅ Where to Purchase: Available on Payhip

✅ Instant Download: Get access immediately after purchase