T This study aims to present the procedures for analyzing the feasibility of related-party transactions using the arm’s length principle at pt abc. pt abc is one of the largest integrated palm oil companies in indonesia and part of a leading business group in the country. the feasibility analysis was conducted to evaluate the fairness of related-party transactions in accordance with the arm’s length principle. the audit methodology involved analyzing price fairness for 54 sales order documents and 1 purchase order document related to transactions with related parties, conducting interviews with the r2r (record to report) and gpm (group performance management) divisions, reviewing documentation, and gaining an understanding of existing policies and procedures. the audit results indicate that the related-party sales and purchase transactions are fair and comply with the arm’s length principle.although the related-party transactions were deemed fair, the utilization of sap has not yet been fully optimized. the use of sap should be enhanced—for example, by leveraging analytical modules (co-pa), sqvi reporting features, and implementing a related-party transaction flagging system. in conclusion, this internship report shows that the audit procedures for related-party transactions at pt abc have been followed and are aligned with the applicable internal audit guidelines, but further optimization of sap utilization is still necessary.