83:

Which of the following is considered a related party transaction?

a.

Company A purchases the securities of company B at their fair value.

b.

Company A has had a distributor relationship with company B for 10 years.

c.

Company A loans funds to company B at market rates.

d.

Company A subsidizes certain operating expenses of company B.

A CPA is examining the purchase orders obtained from the company to verify proper authorization of transactions, this is an example of a(an):

a.

reperformance.

b.

observation.

c.

inspection.

d.

confirmation.