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Chapter 21
Case Study
(a) List some possible related parties of this company
(b) From the auditors’ point of view what risks are there that all the
requirements of FRS 8 may not be met?
(c) and (d) Set out a section in the overall audit plan covering the
requirements of ISA 550
List some possible substantive tests on the subject of related party
transactions and ultimate control
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Examination question
Massive Holdings PLC
i) Explain what actions the auditors should take in respect of these
revelations
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ii) How are they likely to affect the future conduct of the audit
It is likely to have a significant effect because:
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