Examine contract terms for large and unusual sales transactions to determine whether management has included adequate and understandable disclosures of those transactions in the footnotes to the financial statements.

Explanation:

It is very important for company management to be transparent especially on their financial transactions. One way they can show transparency is when the management includes adequate and understandable disclosures of  transactions in the footnotes to the financial statements.

For example, how much was spent on Operations, Marketing etc.

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