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5. Why would the use of data reduction be useful to highlight related party transactions (e.g.,...

5. Why would the use of data reduction be useful to highlight related party transactions (e.g., CEO has her own separate company that the main company does business with)?

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The use of data reduction be useful to highlight related party transactions (e.g., CEO has her own separate company that the main company does business with) beacuse the auditor can focus specifically on those related party transactions that might potentially be sensitive and/or risky.

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