When there is a ready market for financial instruments, the audit procedures related to valuation and disclosures are more straightforward than when the instrument is not readily marketable.

Question

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When an instrument is easily tradable in a market, there are often readily available market prices that can be used to value the instrument. This makes the valuation and disclosure audit procedures simpler and more straightforward compared to when the instrument does not have a ready market.

When There Is a Ready Market for Financial Instruments, the Audit