The basic procedures in auditing significant unusual transactions include:

(a) Reading the underlying documentation relating to significant unusual transactions and evaluating whether the terms and other information about the transaction are consistent with explanations from inquiries and other audit evidence about the business purpose (or the lack thereof) of the transaction

(b) Determining whether the transaction has been authorized and approved in accordance with the company’s established policies and procedures

(c) Evaluating the financial capability of the other parties to the transaction with respect to significant uncollected balances, guarantees, and other obligations

(d) Performing other procedures as necessary depending on the identified and assessed risks of material misstatement

(e) All of the above