Facts specific to the entity's operations must be analyzed to determine whether specific laws or regulations apply, and in what fashion. Importantly, there will be some legal factors that can be defined as being of "primary" importance to the entity's operations because they apply to major and frequently occurring operations, while others may be "secondary" because they arise only rarely or upon the occurrence of specific events outsides the normal course of business. Although the entity should be aware of secondary factors, most attention will be paid to primary mandates and guidelines that directly affect operations.

Management should review all generally prevailing or customary practices that apply to the entity ("customary practices") and ensure that these practices are appropriately adopted. Any deviation from the customary practice should be explained. In certain circumstances, practices that are widely accepted constitute a "de facto" standard that an entity must meet.  Otherwise, that entity may be deemed to be willfully blind to common industry practices.