Prepare the solutions, in proper written form, solutions to the questions on page 5.

The relevant SEC filings are found in the following folders.

In good format, please answer the following questions. How is related party transactions defined by US GAAP, i.e., ASC Codification The AICPA The PCAOB

Be sure to properly document the standards involved.

Review Sears Holding 10-K statements for 2013-2017 (see folder in Blackboard) and answer the following questions: Did Sears Holding properly disclose any transactions with ESL Investments, Inc.? If so, briefly explain the disclosure. Who are the auditors for the 5 years and how long has Sears Holding been a client of the audit firm? What type of opinion did the auditors provide for all years? If any, what were the explanatory or emphasis of matter paragraphs included in the opinion?

Review Sears Holding DEF14Afor 2013-2017 (see folder in Blackboard) and answer the following questions: Identify the audit committees' responsibility regarding related party transactions. Did the audit committee change this governance practice from 2013 until the company filed for bankruptcy? Was there a change in the audit committee members (and any special committees under their governance) after Mr. Lampert became CEO until the bankruptcy filing?

Based on your understanding in answering questions 1-3, do you believe the press and do you agree or disagree with claims filed by Sears Holding against Mr. Lampert, ESL, and other parties? Do you believe the audit committee and any other special committee fulfilled their responsibilities? Please provide arguments, using any other source(s), to support your answer.