What it is
AU-C 550 requires the auditor to ask management who the related parties are, what has changed since last year and what transactions took place with them. ASC 850 requires disclosure of material related party transactions, including the nature of the relationship, the amounts and balances due.
This questionnaire is completed and signed by each owner, officer, director and key manager. It gathers the information in one place so it can be compared with the general ledger, minutes and other evidence.
When to use it
- At planning on every audit and review, sent to each officer, director and significant owner.
- Whenever ownership, governance or key management changes during the year.
What’s inside
- Respondent details and definitions in plain language
- Family members and entities the respondent owns, controls or manages
- Transactions, balances, guarantees and commitments with the entity
- Significant unusual transactions and arrangements outside the normal course of business
- Representation and signature
Standard cited
This template follows AU-C 550 / ASC 850. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 550 explained.
Questions
Who counts as a related party under ASC 850?
Broadly: affiliates, entities under common control, principal owners and their immediate families, management and their immediate families, equity method investees, employee benefit trusts managed by management, and any other party that can significantly influence or control the entity, or be controlled or significantly influenced by it, to the extent one party may be prevented from fully pursuing its own interests. The ASC Master Glossary definition is the full test.
Is a questionnaire enough evidence for related parties?
No. It is one source. AU-C 550 also expects the auditor to stay alert for related party information while reviewing records, minutes, contracts and bank confirmations, to share related party information with the team, and to respond to significant transactions outside the normal course of business.
Related templates
- Fraud Inquiry and Brainstorming Documentation (AU-C 240)
- Management Representation Letter (AU-C 580)
- GAAP Disclosure Checklist (Private Company, Short Form)
Last updated 11/04/2026. All free templates.