Which of the following engagement planning procedures would most likely assist the auditor in identifying related-party transactions before the balance-sheet date?

Which of the following engagement planning procedures would most likely assist the auditor in identifying related-party transactions before the balance-sheet date?



a. inspecting communications with the client's legal counsel regarding recorded contingent liabilities
b. scanning the minutes for significant transactions with members of the board of directors
c. reviewing accounting records for recurring transactions occurring near year-end
d. interviewing internal auditors about their reporting responsibilities


Answer: b. scanning the minutes for significant transactions with members of the board of directors


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