Prior approval of the audit committee/shareholders for the transactions with the supplier, materiality/ significance of the transactions on company’s financial statements, agreement entered into with the supplier and internal control for the transactions with the supplier.

Only the prior approval of the audit committee/ shareholders for the transactions with the supplier is sufficient.

Check whether the company has formulated any policy on dealing with related party transactions and materiality of transactions.

As a statutory auditor you should check the internal controls and internal audit reports only.