You are the auditors of Apollo Services Ltd. and you have recently been reading a report on a similar company that criticised the auditors for failing to comment on the existence of the material related party transactions.

Discussion 

a. What do you mean by this term ‘Related Party Transactions?’
b. What steps do you consider should be incorporated into your audit work to minimise the risk of similar criticism being levelled at your firm?
c. Illustrate your comment with examples of related parties and types of transactions.