Accounting Multiple Choice Question – 12 October 2025

Which ONE of the following are true in respect of related party transactions?

Select ONE answer:

1. Related party transactions must be completely disclosed in the financial statements
2. Related party transactions tend to be low-risk to the auditor
3. Related party transactions disclosure is unlikely to be material to the financial statements
4. Related party transactions will probably pose an insignificant control risk in relation to the entity

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct => Disclosure should be complete.
2. Not correct
3. Not correct
4. Not correct

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