Related Party
Identify transactions with parties having a relationship beyond arm's-length commercial.
- Ledger + supplier master file
What it checks
- Disclosed related parties, agreed to the list management provided.
- Undisclosed candidates, from vendor attributes matched against employee and officer records.
- Per identified party: whether the terms differ from an unrelated counterparty’s.
How the result is read
Employees are the least useful source — directors, officers, shareholders and close family appear in no employee file, and an entity owned by a director is the counterparty this test exists to find. Identification is half the work; the other half is the terms, because a related-party transaction is a finding for being priced differently and for needing disclosure, not for happening.
The worksheet, on the demo engagement
Related Party, as the application draws it for Harrow Precision Engineering Ltd, the fictional demo engagement — one row per identified party.
- Disclosed RP
- 3
- Undisclosed candidates
- 2
- Period-end conc.
- 71%
Result grid4 rows
| Vendor | Relationship | Amount | Terms vs market | Period | Flag |
|---|---|---|---|---|---|
| Director Holdings LLC | Owned by director | 3,000 | Net 0 (prepaid) | Dec | non-arm's-length |
| Orion Supplies | Shares IBAN with employee | 6,400 | Net 30 paid in 7 | Dec | undisclosed RP candidate |
| Cedar Office | Employee address match | 980 | normal | spread | undisclosed RP candidate |
| Lakeside Consulting | Disclosed RP | 1,200 | round, no PO | Dec | round + no PO |
In the application
Related Party is filed under Purchases & payables, index letter D. "Run all analyses" runs it with every other analysis the ledger and the documents loaded can answer. The worksheet states the population it tested on its face — or "Not applicable" with the reason when a column it depends on is empty — and the Excel workbook the engagement exports files it under D, beside an index of the source files with their SHA-256 fingerprints.
Read it with
Run your next audit file test without the Excel crash.
One free engagement to evaluate, valid 60 days. The ledger never leaves the machine.
- 20 minutes
- Runs on a fictional engagement
- No client data required