Related Parties and Control

Why is it important for auditors to be able to identify related parties in a company?

To identify any relationships that may transgress legislation when conducting business transactions.

What is the solvency and liquidity test in relation to the Companies Act?

<p>It refers to the ability of a company to ensure that the assets of the company fairly valued, equal or exceed the liabilities of the company, fairly valued at any reasonable point in time.</p> Signup and view all the answers

<p>What is the responsibility of a company's directors in relation to the solvency and liquidity test?</p> Signup and view all the answers

<p>To ensure that the company satisfies the solvency and liquidity test when making certain decisions and/or passing resolutions.</p> Signup and view all the answers

<p>The ability of a company to ensure the assets of the company exceed the liabilities of the company</p> Signup and view all the answers

<p>To ensure compliance with legislation when conducting business transactions</p> Signup and view all the answers

<p>To test your understanding of the solvency and liquidity test</p> Signup and view all the answers