For the purposes of this Auditing Standard, the following terms have the meanings attributed below:

Arm’s length transaction means a transaction conducted on such terms and conditions as between a willing buyer and a willing seller who are unrelated and are acting independently of each other and pursuing their own best interests.

Related party means a party that is either:  (Ref: Para. A4‑A7)  

1. A related party as defined in the applicable financial reporting framework^*; or
2. Where the applicable financial reporting framework establishes minimal or no related party requirements:
   1. A person or other entity that has control or significant influence, directly or indirectly through one or more intermediaries, over the reporting entity;
   2. Another entity over which the reporting entity has control or significant influence, directly or indirectly through one or more intermediaries; or
   3. Another entity that is under common control with the reporting entity through having:  
      1. Common controlling ownership;
      2. Owners who are close family members; or
      3. Common key management.
   4. However, entities that are under common control by a state (that is, a national, regional or local government) are not considered related unless they engage in significant transactions or share resources to a significant extent with one another.