- 20 Marks
AAA – Mar 2025 – L3 – Q5 – Related Party Transactions
Identify 5 procedures to mitigate risks in related party transactions per 2020 Corporate Governance Code.
Question
(a). According to the corporate governance code for listed companies 2020 SEC/CD/001/10/2020, The Board of Directors shall adopt a related party transactions policy to identify relevant related parties to the company and any transactions with related parties that may take place and which specifies procedures to be adopted that will mitigate the risk that such transactions may be conducted in a way that constitutes a conflict of interest or which is against the interests of shareholders as a whole.
Required:
Identify FIVE procedures to be adopted by a Board that will mitigate the risk that related party transactions conducted are against the interest of shareholders.
(b). The Institute of Chartered Accountants, Ghana Act, 2020 (Act 1058) requires a firm of Chartered Accountants to be registered as a sole proprietorship or partnership but not as a limited liability company.
Required:
Discuss FOUR potential issues with audit firms registering as limited liability companies.
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