Page 239 - Auditing Standards

As of December 15, 2017
The transaction involves unconsolidated related parties, including variable interest entities;

The transaction involves related parties or relationships or transactions with related parties
previously undisclosed to the auditor; 25A

The transaction involves other parties that do not appear to have the financial capability to support

the transaction without assistance from the company, or any related party of the company;

The transaction lacks commercial or economic substance, or is part of a larger series of connected,
linked, or otherwise interdependent arrangements that lack commercial or economic substance

individually or in the aggregate (e.g., the transaction is entered into shortly prior to period end and is
unwound shortly after period end);

The transaction occurs with a party that falls outside the definition of a related party (as defined by

the accounting principles applicable to that company), with either party able to negotiate terms that
may not be available for other, more clearly independent, parties on an arm's-length basis;

The transaction enables the company to achieve certain financial targets;

Management is placing more emphasis on the need for a particular accounting treatment than on the
underlying economic substance of the transaction (e.g., accounting-motivated structured

transaction); and

Management has discussed the nature of and accounting for the transaction with the audit
committee or another committee of the board of directors or the entire board.

Note: AS 2810.20—.23 provide requirements regarding the auditor's evaluation of whether
identified misstatements might be indicative of fraud.

.67A The auditor must evaluate whether significant unusual transactions that the auditor has identified
have been properly accounted for and disclosed in the financial statements. This includes evaluating whether
the financial statements contain the information regarding significant unusual transactions essential for a fair

presentation of the financial statements in conformity with the applicable financial reporting framework. 25B

Note: The auditor considers management's disclosure regarding significant unusual transactions

in other parts of the company's Securities and Exchange Commission filing containing the audited
financial statements in accordance with AS 2710, Other Information in Documents Containing
Audited Financial Statements.

[.68-.78] [Paragraphs deleted.]

Communicating About Possible Fraud to Management, the Audit

Committee, the Securities and Exchange Commission, and Others 37

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