arbiter
JournalsAccount

How Do Auditors in India Respond to Related Party Transactions?

Narendra Nath Kushwaha et al.

Current Issues in Auditing2025https://doi.org/10.2308/ciia-2024-045article
AJG 2ABDC B
Weight
0.50

Abstract

SUMMARY This article summarizes the published study “Related Party Transactions and Audit Fees: Indian Evidence” (Kushwaha, Anand, Jayadev, and Raghunandan 2024). Related party transactions (RPTs) in public companies are of concern to regulators in many countries, such as India, because RPTs can be used for wealth extraction by controlling shareholders. Many public companies in India have concentrated ownership and significant presence of RPTs. After the systemically important Satyam failure in 2009, Indian legislators enacted The Companies Act of 2013 to increase transparency for RPTs and improve corporate governance standards. Kushwaha et al. (2024) show that related party sales are associated with higher audit fees and auditor resignations after the enactment of the 2013 Act. The paper discusses implications for auditors and regulators when companies have material RPTs in non-Western markets. JEL Classifications: G34; M41; M42.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.2308/ciia-2024-045

Or copy a formatted citation

@article{narendra2025,
  title        = {{How Do Auditors in India Respond to Related Party Transactions?}},
  author       = {Narendra Nath Kushwaha et al.},
  journal      = {Current Issues in Auditing},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.2308/ciia-2024-045},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

How Do Auditors in India Respond to Related Party Transactions?

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.