M/s Ram Raj & Associates have been appointed as statutory auditors of
Venus Ltd. for the FY 2019-20. During the year, the company has
entered into some related party transactions. CA Ram, the engagement
partner has taken a management representation letter regarding the
proper accounting, presentation and disclosure of such related party
transactions. Is there any further responsibility of CA Ram with respect
to the other procedures to be performed for related party transactions?

(a) No, there is no further responsibility of CA Ram as the best audit
evidence for the related party transaction is the management
representation letter.
(b) No, there is no further responsibility of CA Ram as the audit firm
is responsible for verifying the balances and disclosure of related
party transactions. The identification of related party
transactions is the responsibility of the management of Venus
Ltd.
(c) Yes, the audit firm has the responsibility to perform the audit
procedures to identify, assess and respond to the risk of material
misstatement arising from the entity’s failure to appropriately account for related party relationships, transactions and
balances.
(d) Yes, the auditor has the responsibility to detect fraud and error
with respect to the related party transactions