Field notes · 2 April 2026
Preparing related-party schedules before the auditor arrives
A short checklist for listing intercompany sales, loans, and guarantees so year-end fieldwork does not stall on missing disclosures.
Related-party disclosures cause more last-minute email chains than almost any other note. The transactions themselves are usually ordinary; the paperwork is not.
What to list
Name every entity under common control or significant influence, then map sales, purchases, loans, interest, guarantees, and year-end balances. Include dormant entities if they still hold balances.
Evidence that shortens fieldwork
Board minutes approving significant transactions, written loan agreements, and reconciliation of intercompany current accounts to the counterpart’s books. If the counterpart is overseas, start that reconciliation early — time zones slow replies.
Where teams slip
Informal advances to directors that never entered the loan register, or management fees booked without a signed service agreement. Flag these before we ask; it builds trust and keeps the audit calendar intact.