Who are related parties in auditing?
2410 (AS 2410), Related Parties, requires auditors of public companies to pay special attention to financial statement matters that pose increased risks of fraud. Specifically, auditors must focus on three critical areas: Related-party transactions, such as those involving directors, executives and their family members.
What are Grap standards?
Standards of Generally Recognised Accounting Practice (GRAP) are accounting standards issued by the Accounting Standards Board (ASB) in terms of section 89 of the Public Finance Management Act (PFMA).
What is the difference between IFRS and grap?
IFRS classifies financial assets as financial assets at fair value through profit or loss; GRAP classifies financial instruments as financial instruments at fair value including financial assets/liabilities designated at fair value, financial instruments at amortised cost; and financial instruments at cost.
What is the difference between Grap and GAAP?
Generally Recognized Accounting Practice or GRAP is a set of fundamental concepts that serve as accounting process guidelines. However, unlike GAAP, they apply to the public sector. GAAP stands for Generally Accepted Accounting Principles. IPSAS stands for International Public Sector Accounting Standards.
How do you audit due to related parties?
Audit procedures that target related-party transactions include 1) testing how related-party transactions are identified and coded in the company’s enterprise resource planning (ERP) system, 2) interviewing accounting personnel responsible for reporting related-party transactions in the company’s financial statements.
What Grap 24?
Scope. GRAP 24 is applicable to all entities preparing their financial statements on the accrual basis of accounting and is also applicable to all entities that are required or elect to make their approved budget publicly available.
What is the purpose of grap?
GRAP ensures that accountants all across South Africa follow a standard process to record financial transactions. This ensures transparency and consistency in the handling of funds by public entities. Therefore, it is important that all state-owned entities in South Africa strictly comply with the GRAP.
Why is grap important?
What qualifies as a related party?
A related party is a person or an entity that is related to the reporting entity: A person or a close member of that person’s family is related to a reporting entity if that person has control, joint control, or significant influence over the entity or is a member of its key management personnel.